Dollar loses ground as stocks gain on stimulus hopes
The U.S. dollar lost ground as equities gained in volatile trading on Thursday with investors betting on the prospects for a new U.S. stimulus package to boost the coronavirus-battered economy after data showed rising unemployment claims.
The dollar index =USD, which measures the greenback against a basket of major currencies, was last down 0.01% at 94.373 after earlier rising to 94.60, its highest level since July 24. The Euro EUR=EBS was up slightly against the dollar at $1.1664.
Currencies and stocks reversed directions as the day wore on as traders latched on to hopes that stalled stimulus talks could resume between House of Representatives Speaker Nancy Pelosi, a Democrat and U.S. Treasury Secretary Steven Mnuchin and Democrats prepared a new stimulus plan.
House Ways and Means Committee Chairman Richard Neal said top Democrats in the chamber were working on a $2.2 trillion coronavirus stimulus package that lawmakers could vote on as soon as next week.
The dollar had risen while stocks fell in morning trade after the U.S. Labor Department said initial claims for state unemployment benefits increased 4,000 to a seasonally adjusted 870,000 for the week ended Sept. 19, compared with 866,000 in the prior week and economist expectations for 840,000 applications.
Reference: Reuters
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