The US dollar continued to depreciate to a 2-year low against the major currencies on Thursday after The Fed chose to maintain its policy and expectations of a U.S. stimulus package and the Brexit deal have boosted investor risk appetite.
At the same time there are reports released by the Department of Labor that there is a significant increase in unemployment claims. This example has shown that the U.S. economy continues to be affected by Covid-19.
The number of Americans who filed their first claim for unemployment benefits rose sharply last week due to a surge in Covid-19 infections that disrupted business operations and hampered recruitment.
The giant currency continues to be under pressure following the Federal Reserve's decision to keep interest rates at a low as congressional negotiators are now reportedly close to reaching an agreement on US stimulus package negotiations.
The US dollar index measuring the greenback depreciated 0.67% against major currencies at the exchange rate of 89,757 as of 10.30 p.m.
In addition, the Canadian dollar benefited from the depreciation of the US dollar and rising crude oil prices with strong trading around the 2-and-a-half-year high.
The pound sterling jumped to 1.3588, its strongest level since May 2018, lifted by market confidence that the Brexit trade agreement could be reached.
Investors are still hoping for Brexit negotiations although at this time the agreement has not yet been reached due to obstacles to fisheries issues.
