NEW YORK: The dollar edged lower on Monday as investors revived bets that an agreement in Washington on a fiscal stimulus package could be reached ahead of the upcoming US election, and on hopes of a coronavirus vaccine by year-end.

The dollar index was down 0.45%, giving back some of its 0.7% rise from last week when a global surge in coronavirus cases and an impasse over the stimulus package stoked caution.

The move out of the safe-haven greenback came after House Speaker Nancy Pelosi said that, while differences remained with President Donald Trump's administration on a wide-ranging coronavirus relief package, she believed legislation could be pushed through before Election Day.

The Chinese currency touched 6.6737 against the US dollar in the offshore market, its strongest since March 2019, before edging back 0.35%.

The yuan has benefited in the last few months from hopes of a Joe Biden win in the US presidential election, as he is seen as less of a threat to US-China relations.

The Australian dollar was 0.35% higher at $0.7102 and the New Zealand dollar rose 0.53% to $0.6641.

Euro/dollar rose 0.55% to $1.1782, while dollar/yen dipped 0.03% to 105.38.

Elsewhere, sterling rose 0.64% versus the dollar to $1.30.