* Dollar index falls to one-week low
* Back and forth on U.S. aid package weighs on dollar
* U.S. jobless claims better than expected
* Risk-on sentiment, equity rally dollar bearish - analysts
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Adds new comment, U.S. data, FX table, updates prices, changes byline, dateline; previous LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, Aug 13 (Reuters) - The dollar fell to its lowest in a week against a basket of currencies on
Thursday, pressured as a safe haven by overall equity market resilience as well as the impasse over
additional stimulus for the U.S. economy to cope with the virus pandemic.
After losing 10% of its value from a peak in March, the dollar index has been bouncing around its
lowest levels in more than two years since late July.
On Thursday, it traded 0.3% lower at 93.079 =USD , led by losses versus the euro. The single European
currency was up 0.5% at $1.1838 EUR=EBS .
At the same time, the S&P 500 .SPX remained within striking distance of a record high, while the
Nasdaq .IXIC rose.
Investors remained focused on the stimulus package talks, which broke down last week.
Funding for the U.S. Postal Service and to shore up election infrastructure became a major sticking
point in congressional talks on coronavirus relief, as President Donald Trump on Thursday vowed to block
any money to facilitate mail-in voting. On Wednesday, Trump accused congressional Democrats of not wanting to negotiate over a U.S.
coronavirus aid package as Republican and Democratic negotiators traded blame for a five-day lapse in
talks over relief legislation. "The longer wait for Washington to deliver another round of pandemic relief has caused dollar-negative
clouds to gather over the economy," said Joe Manimbo, senior market analyst, at Western Union Business
Solutions in Washington.
Analysts also noted recent equity market resilience has worked against the dollar.
"The S&P500 briefly touched record highs yesterday, confirming the ability of equities to quickly
shrug off negative drivers to sentiment," said Francesco Pesole, FX strategist at ING. "This remains a key
point in favor of the dollar-bearish argument."
The dollar though shrugged off better-than-expected U.S. jobless claims data.
Initial claims for state unemployment benefits decreased 228,000 to a seasonally adjusted 963,000 for
the week ended Aug. 8. That was the lowest level since mid-March when authorities started shutting down
non-essential business to slow the spread of the novel coronavirus. Economists polled by Reuters had
forecast 1.12 million applications in the latest week. The Japanese yen recouped some of its losses from the previous day, against the dollar, which was last
down 0.1% at 106.78.
The British pound GBP=D3 rose 0.7% against the dollar to $1.3101.
"I think the market is going through a consolidative phase for the dollar," said Vassili Serebriakov,
currency strategist, at UBS in New York, adding that the dollar's bearish trend remained well-entrenched.
The onshore yuan CNY=CFXS briefly rose to a five-month high before steadying at 6.9421 per dollar.
U.S. and Chinese officials meet Saturday to review their Phase I trade deal.
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Currency bid prices at 11:02AM (1502 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1832 $1.1782 +0.42% +5.55% +1.1864 +1.1782
Dollar/Yen JPY= 106.8800 106.8900 -0.01% -1.82% +106.9900 +106.5700
Euro/Yen EURJPY= 126.47 125.97 +0.40% +3.71% +126.7400 +125.9200
Dollar/Swiss CHF= 0.9099 0.9120 -0.23% -5.98% +0.9133 +0.9083
Sterling/Dollar GBP= 1.3088 1.3032 +0.43% -1.29% +1.3123 +1.3032
Dollar/Canadian CAD= 1.3208 1.3244 -0.27% +1.74% +1.3256 +1.3192
Australian/Doll AUD= 0.7172 0.7162 +0.14% +2.15% +0.7187 +0.7157
ar
Euro/Swiss EURCHF= 1.0768 1.0745 +0.21% -0.77% +1.0790 +1.0747
Euro/Sterling EURGBP= 0.9039 0.9039 +0.00% +6.92% +0.9052 +0.9031
NZ NZD= 0.6566 0.6577 -0.17% -2.52% +0.6598 +0.6555
Dollar/Dollar
Dollar/Norway NOK= 8.8713 8.9404 -0.77% +1.06% +8.9586 +8.8548
Euro/Norway EURNOK= 10.5003 10.5470 -0.44% +6.73% +10.5630 +10.4923
Dollar/Sweden SEK= 8.6750 8.6788 +0.26% -7.19% +8.6972 +8.6529
Euro/Sweden EURSEK= 10.2655 10.2391 +0.26% -1.95% +10.2800 +10.2375