Early trade in NY: dollar steadies against basket of currencies

The US dollar steadied against a basket of major currencies on Thursday after rebounding from a more than three-week low in the previous session as risk appetite improved, though concerns over the passage of a US tax revamp kept gains in check. The dollar index, which measures the greenback against six rival currencies, was little changed at 93.824. The index, which slipped as low as 93.813 on Wednesday, its lowest since October 20, recovered some ground as global markets showed a recovery in risk appetite.
The index pared some early gains after data showed the number of Americans filing for unemployment benefits unexpectedly rose last week. "Some of the selling pressure on the dollar seems to have abated a little bit. We are seeing a slightly less negative mood in global financial markets," said Omer Esiner, chief market analyst at Commonwealth Fooreign Exchange in Washington. Investors tentatively returned to stock markets around the world looking for bargains on Thursday.
The euro, which soared on Wednesday after data showed the German economy shifted into a higher gear in the third quarter, has given up some of those gains. Dollar bulls have been encouraged by upbeat data on underlying inflation in the United States. The euro was 0.12 percent lower at $1.1777. The Republican-controlled US Congress was approaching a major test on Thursday of its ability to overhaul the federal tax code, as lawmakers prepared for their first full-scale vote on sweeping tax legislation.
Sterling was up 0.24 percent against the dollar to $1.32, after marginally better-than-expected retail sales data, even as investors kept an eye on uncertainty around Brexit negotiations.