Dollar drops for second day ahead of US jobless claims data

The US dollar fell on Thursday, to deepen its losses for the second straight day, on doubts about the US new stimulus package to address the coronavirus impact, and ahead of the US weekly unemployment claims.

The dollar index fell 0.4% to 93.01 points, after opening at 93.37, and hit an intraday high of 93.37.

The index lost 0.25% yesterday, posting its first daily loss in 4 days, on profit-taking from a 1-week high of 93.91 points.

The 10-year US treasury bond yield fell on Thursday, to pullback from a 5-week high of 0.698%, due to the political stalemate in the US over the new stimulus package.

Democrats and Republicans are far apart on the new coronavirus relief bill, as negotiators from both parties exchanging blows for delaying the talks for 5 days.

US President Donald Trump accused the Dems on Wednesday of not wanting to negotiate over the aid coronavirus package.

While Speaker of the US House of Representatives Nancy Pelosi said on Wednesday that Democrats and the Trump administration are "miles apart" in the coronavirus relief negotiations.

Investors are anticipating key economic data releases today on the US labor market, amid the latest developments in the coronavirus crisis that forced the US to tighten the public lockdown restrictions once again in some cities and states.

At 12:30 GMT, the US economy will release the unemployment claims reading, with forecasts to reach 1.120 million from 1.186 million during the week ending August 8.

The US economy closure since mid-March has forced around 55 million American workers to apply for unemployment benefits, and pushed the US unemployment rate to its all-time high of 14.7% during April.