By Ira Iosebashvili 

The dollar edged higher Monday, as investors fretting over the eurozone economy sought shelter in the U.S. currency.

The WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, was recently up 0.3% at 90.20. The euro, meanwhile, was down 0.4% at $1.1468.

Italy's government pledged to press on with its spending plans Monday, despite warnings by the European Union that its proposed budget would violate the bloc's fiscal rules. The move could lead the EU to reject the Italian coalition government's budget and imposing fines on the country.

Meanwhile, worries over slowing growth in China sent investors out of emerging-market currencies. The dollar was recently up 0.7% against the Mexican peso and gained 0.1% against the Korean won.

Chinese officials last week rushed to reassure investors that the country's economic fundamentals are solid, despite slowing growth and recent stock-market declines.

Write to Ira Iosebashvili at ira.iosebashvili@wsj.com

(END) Dow Jones Newswires

October 22, 2018 16:44 ET (20:44 GMT)