NEW YORK: The dollar extended its losses against a basket of currencies to hit a seven-week low on Wednesday after US President Donald Trump boosted hopes for a large fiscal stimulus package, prompting some traders to ramp up bets on riskier currencies.

The White House and Democrats in the US Congress moved closer to agreement on a new coronavirus-related relief package on Tuesday as Trump said he was willing to accept a large aid bill despite opposition within his own Republican Party.

With just two weeks until the US presidential election, Trump signaled a willingness to go along with more than $2.2 trillion in new relief, a figure Democrats have been pushing for months.

The US dollar currency index was 0.4% lower at 92.694, its lowest since Sept. 2.

The greenback slipped to a four-week low against the yen, with the Japanese currency set to log its best one-day gain since Aug. 28.

The riskier New Zealand and Australian dollars both advanced, with the Kiwi up 1.03% and the Aussie up 0.81 versus the greenback.

China’s yuan surged, in both offshore and onshore trading, led by firmer central bank guidance and recent data suggesting a more sustained recovery in the world’s second-largest economy.