Dollar clings above 2-year low ahead of US GDP data

The US dollar rose on Thursday, to cling above its 2-year low, as demand rebounded relatively, ahead of the US GDP reading for the second quarter, which is expected to show the worst contraction since the 1930s Great Depression.

The dollar index rose 0.4% to 93.68 points, after opening at 93.32, and hit an intraday high of 93.31.

The index lost 0.5% yesterday, and posted its 2-year low of 93.18 points, after the Federal Reserve decisions.

The US Federal Reserve voted on Wednesday to maintain rates at near zero while asserting it's ready to use all available tools to bolster the economy against the pandemic.

The Fed pledged after to continue its bond purchases and lending programs, adding that the economy is still behind its pre-pandemic levels, and a full recovery will depend on containing the virus..

Investors are anticipating key economic data releases today on the US GDP for the second quarter, amid expectations for the worst reading since the 1930s Great Depression.

At 12:30 GMT, the US GDP reading will be released, which is expected to show a contraction of 34.5% in the second quarter of the year, compared to a 5% drop in the first quarter. 

At the same time, US jobless claims are expected to reach 1.440 million in the week ending July 25 from 1.416 million the previous week.

The US economy closure since mid-March has forced around 52 million American workers to apply for unemployment benefits, and pushed the US unemployment rate to its all-time high of 14.7% during April.