Early trade in New York: dollar edges lower

The dollar edged lower on Tuesday in choppy trading after the Chinese central bank said it would gradually exit from regular intervention in the foreign exchange market. But analysts said over the medium term, the dollar is still expected to perform better than the euro and yen, as the Federal Reserve prepares to wind down its stimulus, a process that many expect will get under way in March next year.
The dollar index, a gauge of the greenback's value against six major currencies, was down 0.2 percent at 80.703. The Australian dollar rallied on the China news, rising 0.4 percent to US $0.9416. The euro was flat on the day at $1.3519, having earlier been as high as $1.3544.