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Dollar edges up but gains in check as risk appetite rebounds

NEW YORK, Oct 18 (Reuters) – The U.S. dollar edged higher against a basket of currencies on Tuesday, shaking off some of the weakness of the previous session, but a revival in risk appetite in global financial markets kept a lid on its gains.

“Yesterday’s risk-on vibe looks to be continuing into today’s session,” said Michael Brown, head of market intelligence at payments firm Caxton in London.

“A lack of any major headlines, coupled with some semblance of fiscal stability in the UK, appear to be the culprits,” he said.

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Britain’s new Finance Minister Jeremy Hunt on Monday scrapped Prime Minister Liz Truss’s economic plan, which had sapped investor confidence in Britain in recent weeks.

Relief at the U-turn prompted a rally in risk assets, including on wall Street. U.S. stock market gains were also driven by strong corporate earnings from Goldman Sachs (GS.N) and Johnson &…

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