Dollar, yen firm on worries about renewed lockdowns

The dollar and yen firmed on Thursday as resurging COVID-19 infections and little progress on a U.S. stimulus package rattled investors. The Aussie hit a one-week low after the Reserve Bank of Australia hinted at monetary easing.

The safe-haven yen traded at 105.25 on the dollar in early trade, slightly lower than the two-week high of 105.04 hit overnight. The dollar firmed against most peers except for the pound, which improved on signs of progress in Brexit talks.

The Aussie slid 0.5% to $0.7129 after RBA Governor Philip Lowe said the central bank is considering bond buying and a small rate cut for policy support.

The pound held on to a 0.5% gain overnight to $1.3018 as the European Union and Britain are reported to be working on the gaps of a new trade agreement.