Fundamental Comment

Dollar falls ahead US jobless claims, stimulus package approved

Dollar falls ahead US jobless claims, stimulus package approved

The U.S. dollar continued to fall in Thursday's trading, ahead of US unemployment claims figures and due to the contribution of the huge U.S. economic stimulus deal that eased fears of dollar liquidity shortage.

As of 07:44 GMT, the U.S dollar index, which measures the performance of six major currencies against the greenback, traded at 100.78, heading for its fifth straight daily loss, noting that the lowest level recording during the session was at 100.41.

Eyes will focus on US unemployment claims scheduled to be released later in the day, with expectations of a rise of about one million requests, which will be higher than the previous peak of 700,000 recorded in 1982.

The awaited weekly jobless claims would give an update about the impact of the Covid-19 outbreak on the U.S. labor market.

The White House and Senate leaders agreed on the proposed stimulus package to combat the economic damage caused by the CORONA virus, with majority Leader Mitch McConnell saying that a vote for the bill is expected later in the day.

The bailout package, the largest ever approved by the U.S. Congress, includes $500 billion in funding to help hard-hit industries and a similar amount in direct payments to millions of American families.

In addition, $350 billion in loans to be granted to small businesses, $250 billion to expand unemployment assistance and $100 billion for hospitals and health systems.

As for the developments of Coronavirus, the incidence of Covid-19 infections in the United States has risen to more than 68,000, while deaths have shot up to 1,032.

US Stocks gain

US stock indices surged at the end of trading on Wednesday, recording the first rise for two consecutive sessions since last month.

The Dow Jones Industrial Average rose 2.4 percent to 21,200.5 points, or 495.6 points. The S&P 500 gained 1.1 percent to 2,475 points, while the Nasdaq Composite fell 0.4 percent to 7,384.

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