Dollar slips as markets brace for unemployment claims surge

The dollar plunged against the Japanese yen on Thursday before the release of data expected to increase claims for unemployment benefits in the US. Several American firms lay off employees due to the persisting virus outbreak.

The pound fell against the euro and the dollar as the market remained wary of Britain’s ill-preparedness for a possible surge in coronavirus cases, as is the situation in Spain and Italy. The New Zealand and Australian dollars fell against the US dollar as investors avoided excessive risks in trading.

Markets await the $2 trillion US stimulus package to be passed in order to combat the impact of the virus to the economy.

The dollar slipped 0.2% at 110.98 against the Japanese yen but remained steady against the Swiss franc at 0.9652.

The pound lost 0.43%, at $1.1831 against the dollar and dropped 0.5%, at 92.08 pence per euro. The total confirmed cases in the UK reached 9,529 on Wednesday, from 8,077 on Tuesday.

Analysts expect jobless claims to surge up to more than one million as rapid layoff is carried out by many companies. Restrictions imposed to contain the virus are expected to plunge the global economy into a recession.

US President Donald Trump is anticipated to immediately sign the bill into law once the voting process in the Senate gets decided.