FOREX-Dollar strengthens, bounces around after jobless claims

(Updates throughout, changes byline, dateline, previous LONDON)
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Caroline Valetkevitch
NEW YORK, Aug 6 (Reuters) - 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.
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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