Dollar dives to 4-week low with unemployment claims in focus

The US dollar fell on Thursday, to deepen its losses for the second straight day, dropping to a 2-week low, as demand slowed and market risk appetite improved, which comes ahead of key US data releases on the weekly unemployment claims.

The dollar index fell 0.2% to the lowest since June 11 at 96.24 points, after opening at 96.45, with an intraday high of 96.55.

The greenback fell 0.5%, its third daily loss in 4 days, and the largest since June 2, as investors risk appetite improved, while US stock indices rallied to new highs.

Demand for the US dollar continues to decline, amid a broad rally in most global stock and commodity markets, after China managed to contain the coronavirus outbreak in its capital, Beijing, raising hopes of a quick recovery from the coronavirus impact.

In the US, Nasdaq index jumped to a new record as most tech shares surged, amid hopes for the Federal Reserve to expand monetary stimulus to support the economy from the coronavirus damages.

Investors are anticipating key economic data releases today on the US the US weekly jobless claims.

At 12:30 GMT, the US economy will release the unemployment claims reading, with forecasts to reach 1.375 million during the week ending July 4 vs. 1.427 million during the previous week.

The US economy closure since mid-March has led around 48 million American workers to apply for unemployment benefits, and pushed the US unemployment rate to its all-time high of 14.7% during April.