FOREX-Dollar up on fears of new pandemic wave, unemployment claims

(New throughout)
By Kate Duguid
NEW YORK, June 18 (Reuters) - The U.S. dollar strengthened
on Thursday as concerns about a rise in new coronavirus cases
globally and higher-than-expected U.S. unemployment claims drove
demand for the safe-haven currency.
An index tracking the dollar against a basket of currencies
=USD was up 0.38% to 97.437. The dollar has strengthened in
recent weeks as investors grappled with fears about the
coronavirus pandemic's impact on economic growth.
The Japanese yen strengthened against the euro EURJPY= by
0.35% but was roughly flat against the dollar JPY= after
earlier in the day hitting its highest since June 12.
The number of Americans filing for unemployment benefits
fell last week, but the pace of decline appears to have stalled
amid a second wave of layoffs as companies battle weak demand
and fractured supply chains, supporting views that the economy
faces a long and difficult recovery from the COVID-19 recession.

"The greenback's move higher came on fresh safe-haven buying
following a much better Philly Fed index bounce, though a
significantly higher than expected jobless claims print, and on
increasing concerns over the spread of coronavirus both in the
U.S. and other regions around the world," wrote analysts at
Action Economics.
More than 8.36 million people have been reported to be
infected by the novel coronavirus globally and 447,985​ have
died, a Reuters tally found. A surge in new infections in several U.S. states and the
imposition of travel curbs in Beijing to stop a new outbreak
there have served as a reminder of the risks of reopening
economic activity before a vaccine has been developed.
The euro was last 0.36% weaker against the greenback, at
$1.120 EUR= . The common currency has lost nearly 1% of its
value in less than a week as investors questioned whether the
European Union would be able to pass an ambitious stimulus plan
proposed by the European Commission, given that some countries
are opposed to handing out aid as grants.