2020.03.2621:09:00UTC+00Dollar Tumbles As Jobless Claims Soar

The U.S. dollar tumbled against most of its peers after data showed first-time unemployment claims rose to an all-time high in the week ended March 21 due to businesses shutting down almost across the U.S. due to the coronavirus pandemic.

The report from the Labor Department showed initial jobless claims skyrocketed to 3,283,000 in the week ended March 21, an increase of 3,001,000 from the previous week's revised level of 282,000.

Economists had expected jobless claims to spike to about 1.5 million from the 281,000 originally reported for the previous week.

With the record-breaking increase, the number of seasonally adjusted initial claims reached the highest level in the history of the seasonally adjusted series.

The sharp rise in jobless claims offset optimism over the Senate nod to the $2 trillion fiscal stimulus package aimed at mitigating the economic effects of the virus. The bill will now move to the Democrat-controlled House on Sunday for final approval.

Initial jobless claims skyrocketed to 3,283,000 in the week ended March 21, an increase of 3,001,000 from the previous week's revised level of 282,000.

Economists had expected jobless claims to spike to about 1.5 million from the 281,000 originally reported for the previous week.

With the record-breaking increase, the number of seasonally adjusted initial claims reached the highest level in the history of the seasonally adjusted series.

The dollar index tanked to 99.24, sliding gradually right since morning, and was last seen at 99.44, down 1.6% from previous close.

Against the Euro, the dollar weakened to $1.1034, going down by nearly 1.4%.

The British Pound Sterling was pretty strong against the greenback, with a unit of sterlig fetching $1.2193, more than 2.6% up from Wednesday's $1.1880. Bank of England's policymakers today unanimously decided to hold the interest rate at a record low and asset purchase programme and signaled further easing if required.

The bank also noted risk of longer-term damage to the economy from the coronavirus, or covid-19 outbreak.

At the regular policy meeting, the Monetary Policy Committee governed by Andrew Bailey decided to maintain the interest rate at 0.1% and the quantitative easing at GBP 645 billion.

The Japanese Yen strengthened to 109.59 yen, rallying from previous close of 111.21 yen a dollar.

The Aussie was up sharply at 0.6057, more than 1.6% higher than yesterday's close.

Against Swiss franc and the Loonie, the dollar was down 1.4% and 1.2%, at 0.9633 and 1.4021, respectively.