Dollar on course for weekly loss on weak U.S. jobs data

The dollar was on course for its first losing week after two weeks of gains as weak U.S. jobs data dented investor’s hopes for a quicker pandemic recovery.

The dollar was on the defensive on Friday, hovering near two-week lows due to weaker-than-expected U.S. unemployment claims. It added to worries that the dollar’s previous rally rose faster than the pace of U.S. pandemic recovery.

Traders were torn in half over how U.S. President Joe Biden’s proposed $1.9 trillion COVID-19 stimulus aid will impact the dollar. Some presume it could speed up U.S. economic recovery compared to other countries, while others see it as a major driver for risky assets at the dollar’s expense. 

The dollar index stood at 90.423 amid the Chinese new year, on course to drop 0.6% this week. The dollar was flat at 104.77 against the yen, down 0.6% from last week. The euro was little changed at $1.21275, on its way to a 0.6% weekly rise.