Early trade in New York: Dollar eases with focus on stimulus talks, election

NEW YORK: The dollar dipped on Tuesday, but moves were muted as investors awaited the outcome of fiscal stimulus talks ahead of the upcoming US presidential election and as coronavirus cases spiked in Europe.

The dollar index declined 0.31% and was on track for its second day of declines as House Speaker Nancy Pelosi set the end of the day as a deadline for negotiations over a coronavirus aid package.

The euro rebounded 0.38% to a one-week high at $1.1815 after weakening 0.1% to $1.17600 in early London trading. That reflected a broader recovery in European stock markets which popped into positive territory after registering some early losses. US stock opened higher.

Elsewhere, the Australian dollar dropped 0.53%, hitting a three-week low at 0.7030 on increasing expectations of monetary easing next month by the central bank. Sterling edged up slightly, adding to small gains made the previous day; it rose 0.16% to 1.2971.