* Treasury yields retreat after U.S. jobless data
* Pound stems losses vs. USD after hard profit-taking hit
(Updates prices, market activity, comments to U.S. market open;
changes dateline, previous LONDON)
By Saqib Iqbal Ahmed and Ritvik Carvalho
NEW YORK, April 8 (Reuters) - The U.S. dollar fell to a
two-week low against a basket of currencies on Thursday,
tracking Treasury yields lower, after data showed a surprise
rise in U.S. weekly jobless claims.
The number of Americans filing new claims for unemployment
benefits unexpectedly rose last week. While the increase likely
understates rapidly improving labor market conditions as more
parts of the U.S. economy reopen and fiscal stimulus kicks in,
it was bad enough to knock down the greenback. The U.S. Dollar Currency Index =USD , which measures the
greenback against a basket of six currencies, was 0.3% lower at
92.137, its lowest since March 23. The dollar also hit a
two-week low against the Japanese yen JPY=EBS .
Thursday's data followed the release in the previous session
of minutes of the Federal Reserve's March policy meeting, which
showed Fed officials remained cautious about the risks of the
pandemic - even as the U.S. recovery gathered steam amid the
massive stimulus - and committed to providing monetary policy
support. "With the job market moving in the wrong direction, it
underscored this week's Fed minutes that emphasized how the
economy was far from what the Fed considers to be healthy," Joe
Manimbo, senior market analyst at Western Union Business
Solutions in Washington, said in a note.
"Data that reinforces the Fed's dovish stance is likely to
keep Treasury yields and the dollar anchored," he said.
Fed Chair Jerome Powell will speak at a virtual
International Monetary Fund conference later on Thursday.
The benchmark 10-year Treasury yield US10YT=RR was around
1.632% on Thursday, after dipping below 1.63% overnight. It hit
1.776% late last month, its highest in more than a year.
The U.S. currency - which appreciated this year, helped in
part by a rally in U.S. Treasury yields - has come under
pressure in recent sessions as yields have retreated.
Sterling steadied against the dollar and the euro on
Thursday, stanching its losses after a bruising bout of
profit-taking, with traders optimistic about its near-term
prospects after a strong start to the year. The pound was up
0.14% against the greenback.
With the dismal jobless claims data weighing on the
greenback, the Canadian dollar CAD=D4 edged higher, recovering
from a one-week low. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates https://tmsnrt.rs/2RBWI5E
Falling yields drive USD lower https://tmsnrt.rs/3cWvaFb
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