The dollar edged lower in early European trade Tuesday, as the surge in Covid-19 cases in the U.S. prompted more restrictions and as worries about a smooth transfer of presidential power mount.
At 3:55 a.m. (ET), the Dollar Index, which tracks the greenback against a basket of six other currencies, was down 0.1% at 92.532. EUR/USD climbed 0.1% to 1.1854, USD/JPY fell less than 0.1% to 104.54, while the risk sensitive AUD/USD fell 0.1% to 0.7313.
Elsewhere, GBP/USD rose 0.1% to 1.3199, following reports that the U.K. and the European Union could reach a Brexit divorce agreement by the beginning of next week.
Recent gains for sterling tend to suggest that some form of a deal is largely priced into the foreign exchange market.
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