* 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
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(New throughout, updates prices, market activity and comments)
By Gertrude Chavez-Dreyfuss
NEW YORK, Aug 13 (Reuters) - The dollar slid on Thursday against some major currencies such as the
euro, Swiss franc, and sterling, weighed down by the impasse in Congress about additional U.S. stimulus to
help cope with the coronavirus pandemic.
In the afternoon session though, the dollar trimmed its losses, as U.S. stock indexes fell.
After losing 10% of its value from a peak in March, the dollar has been bouncing around its lowest
levels in more than two years since late July.
Investors, however, 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 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 stalemate over the stimulus package is troubling," said Amo Sahota, executive director at
currency advisory firm Klarity FX in San Francisco. "Sticking more band-aid over it, which is what the
administration is trying to do right now, is not enduring."
In afternoon trading, the euro was up 0.1% at $1.1798 EUR=EBS . Since the beginning of July, the euro
has gained nearly 6% versus the dollar.
Against the Swiss franc, the dollar fell 0.2% to 0.9105 franc CHF=EBS .
Sterling also rose 0.3% versus the dollar to $1.3051 GBP=D3 .
The dollar index was little changed to slightly lower at 93.316 =USD . Earlier, it fell to a one-week
low.
"The dollar being weaker is a sign of positive risk sentiment," said Klarity's Sahota. "The market is
moving to places that would give them a better return and more comfortable in buying the Australian
dollar, euro, and even the pound."
The dollar also 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 virus. Economists polled by Reuters had forecast 1.12
million applications in the latest week. Against the yen, the dollar was flat at 106.91 yen JPY=EBS .
The offshore yuan CNH=EBS rose to a five-month high, but last traded 0.3% lower at 6.9519 per U.S.
dollar. U.S. and Chinese officials meet Saturday to review their Phase I trade deal.
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Currency bid prices at 3:13PM (1913 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1797 $1.1782 +0.13% +5.24% +1.1864 +1.1782
Dollar/Yen JPY= 106.9300 106.8900 +0.04% -1.77% +107.0400 +106.5700
Euro/Yen EURJPY= 126.17 125.97 +0.16% +3.46% +126.7400 +125.9200
Dollar/Swiss CHF= 0.9105 0.9120 -0.16% -5.92% +0.9133 +0.9083
Sterling/Dollar GBP= 1.3046 1.3032 +0.11% -1.61% +1.3123 +1.3032
Dollar/Canadian CAD= 1.3223 1.3244 -0.16% +1.83% +1.3256 +1.3192
Australian/Doll AUD= 0.7137 0.7162 -0.35% +1.65% +0.7187 +0.7138
ar
Euro/Swiss EURCHF= 1.0746 1.0745 +0.01% -0.98% +1.0790 +1.0745
Euro/Sterling EURGBP= 0.9042 0.9039 +0.03% +6.96% +0.9052 +0.9029
NZ NZD= 0.6539 0.6577 -0.58% -2.92% +0.6598 +0.6540
Dollar/Dollar
Dollar/Norway NOK= 8.8980 8.9404 -0.47% +1.36% +8.9586 +8.8548
Euro/Norway EURNOK= 10.4980 10.5470 -0.46% +6.71% +10.5630 +10.4920
Dollar/Sweden SEK= 8.7006 8.6788 +0.28% -6.92% +8.7070 +8.6529
Euro/Sweden EURSEK= 10.2679 10.2391 +0.28% -1.92% +10.2800 +10.2375