WASHINGTON (dpa-AFX) - The U.S. dollar recovered after early weakness on Thursday, but failed to sustain at higher levels against most of its peers as renewed optimism about more U.S. fiscal stimulus bolstered the risk sentiment.
President Donald Trump, who called off negotiations over a stimulus bill on Tuesday, called on Congress to pass more relief for airlines and small businesses and other stimulus measures.
U.S. House of Representatives Speaker Nancy Pelosi said on Thursday said legislation to help airline companies survive the fallout from the coronavirus pandemic was a matter of national security and could only move through Congress with guarantees that lawmakers will work on a more comprehensive aid bill.
Also, polls put Joe Biden's national lead close to double digits, triggering hopes for more stimulus.
Data released by the Labor Department showed initial jobless claims edged down to 840,000, a decrease of 9,000 from the previous week's revised level of 849,000. Economists had expected jobless claims to dip to 820,000 from the 837,000 originally reported for the previous week.
The dollar index, which rose to 93.78 from a low of 93.50, was last seen hovering around 93.60, down marginally from previous close.
Against the Euro, the dollar firmed up to $1.1734 but pared most of its gains as it eased to $1.1758, up just slightly from Wednesday's close of $1.1767. According to the minutes from the European Central Bank's recent meeting, policymakers agreed that a further appreciation of the euro constituted a risk to both growth and inflation.
Members assessed that the recent volatility in the exchange rate of the euro required careful monitoring with regard to its possible implications for the medium-term outlook for price stability. The Governing Council reiterated its readiness to adjust all of its instruments, as appropriate, to ensure that inflation moved towards its goal in a sustained manner.
The Pound Sterling was stronger with a unit of Sterling fetching $1.2933, compared with $1.2919 Wednesday evening.
The Yen, which moved in a tight range for much of the day's session, was slightly weaker at 106.04 a dollar.
The Aussie was firmed up almost 0.4% with the AUD-USD pair at 0.7166, after settling at 0.7139 on Wednesday.
The Swiss franc was up slightly at 0.9171 a dollar, while the Loonie was firmer at $1.3196, firming up by about 0.5% from C$1.3256.
Data from the State Secretariat for Economic Affairs showed that Switzerland's jobless rate dropped marginally in September.
In Canadian economic news, housing starts in Canada fell by 20.1% over a month earlier to 208,980 units in September. That was notably lower than an expected figure of 240,000 units.
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