The dollar rose on Thursday, bouncing back from recent weakness after U.S. data showed fewer Americans sought jobless benefits last week.
The dollar index briefly pared gains before gaining ground following the claims data, which also showed 31.3 million people were receiving unemployment checks in mid-July, suggesting the U.S. labor market was stalling.
The dollar index, which measures the dollar against a basket of currencies, was last up 0.3% at 93.057. <=USD> The index lost 4% in July.
"The market is mostly just consolidating a little bit after this amazing weakness we've had of late," said Axel Merk, president and chief investment officer at Merk Hard Currency Fund in Palo Alto, California.
At the same time, "the weakest currencies are the ones that have been doing the best in recent days."
The euro was down 0.1% at $1.1844 against the dollar after reaching a two-year high of $1.1916 <EUR=EBS>.
Analysts worried that programs such as unemployment benefits are covering up underlying damage to the economy.
Investors were waiting for U.S. lawmakers to agree on a new package of support for the United States. With no sign of an agreement in sight, Republicans and Democrats remained trillions of dollars apart.
In emerging markets, Turkey's lira earlier hit a record low against the euro. Analysts warned of inflation and predicted state attempts to aid the currency would struggle.
"That is a concern because that it could have ripple effects elsewhere," Merk said.
The Aussie dollar was last up 0.4% at $0.7221 against the U.S. dollar. <AUD=D3>
Australia's second-biggest city, Melbourne, started a six-week total lockdown on Thursday, following a resurgence of COVID-19 cases.
========================================================
Currency bid prices at 11:04AM (1504 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1844 $1.1861 -0.14% +5.66% +1.1915 +1.1819
Dollar/Yen JPY= 105.5000 105.5700 -0.07% -3.09% +105.6900 +105.3100
Euro/Yen EURJPY= 124.96 125.25 -0.23% +2.47% +125.5800 +124.6900
Dollar/Swiss CHF= 0.9106 0.9083 +0.25% -5.91% +0.9129 +0.9066
Sterling/Dollar GBP= 1.3143 1.3112 +0.24% -0.87% +1.3185 +1.3113
Dollar/Canadian CAD= 1.3295 1.3264 +0.23% +2.38% +1.3322 +1.3243
Australian/Doll AUD= 0.7221 0.7191 +0.42% +2.85% +0.7223 +0.7175
ar
Euro/Swiss EURCHF= 1.0788 1.0775 +0.12% -0.60% +1.0807 +1.0753
Euro/Sterling EURGBP= 0.9010 0.9044 -0.38% +6.58% +0.9053 +0.8985
NZ NZD= 0.6658 0.6645 +0.20% -1.16% +0.6669 +0.6629
Dollar/Dollar
Dollar/Norway NOK= 8.9830 8.9499 +0.37% +2.33% +9.0171 +8.9043
Euro/Norway EURNOK= 10.6427 10.6176 +0.24% +8.18% +10.6738 +10.6076
Dollar/Sweden SEK= 8.6966 8.6666 +0.18% -6.95% +8.7225 +8.6267
Euro/Sweden EURSEK= 10.3019 10.2833 +0.18% -1.59% +10.3241 +10.2702
(Reporting by Caroline Valetkevitch; additional reporting by Elizabeth Howcroft, editing by Larry King and David Gregorio)
