By Gertrude Chavez-Dreyfuss
NEW YORK (Reuters) – The dollar kicked off the fourth quarter on a sour note, falling to a more than one-week low on Thursday against a major currency basket, as hopes for U.S. fiscal stimulus cheered investors and spurred them to seek higher-yielding but riskier currencies.
The Chinese yuan gained the most against the dollar, reaching a year-and-a-half high in the offshore market, as a holiday in China dried up liquidity, exaggerating the moves.
In addition, Chinese data on Wednesday showed its economic recovery was on track.
Commodity currencies such as the Australian, New Zealand, and Canadian dollars as well as the Norwegian crown also rose versus the greenback.
U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin remained far from agreement on COVID-19 relief in several key areas on Thursday, after a phone discussion failed to bridge what Pelosi described as differences over dollars and