Dollar consolidates above 7-week low ahead of US jobless claims

The US dollar rose on Thursday, to consolidate above the 7-week low, on the cusp of the first gain in 5 days, as demand increased amid doubts about the US passing the new Covid-19 aid package. ahead of the US weekly unemployment claims.

The dollar index rose 0.3% to 92.92, after opening at 92.66, and hit an intraday low at 92.61.

The index lost 0.5% yesterday, posting its fourth daily loss, and hit the lowest since September 2 at 92.47 points.

US President Donald Trump accused Democrats of being unwilling to formulate a compromise on the economic aid bill, which came in tandem with expectations about the difficulty of passing the bill through the Republican-controlled Senate before the Nov.3 presidential election.

The debate about the US second fiscal aid package dampened the global market sentiment and increased doubts about passing the package ahead of the next US presidential election, which renewed demand for the US dollar as the best alternative investment.

Investors are anticipating key economic data releases today on the US labor market, amid the latest developments in the coronavirus crisis and the rising infections in several US states.

At 12:30 GMT, the US economy will release the unemployment claims reading, with forecasts to reach 0.860 million during the week ending October 17, from 0.898 million last week.