* Treasury yields are falling after the release of US unemployment data.
* The pound is holding back losses versus the US dollar after a sharp drop in profits (updates prices, market activity, comments on the US market open; changes date, previous LONDON)
NEW YORK, Apr 8 (Reuters) – The US dollar fell to a two-week low against a basket of currencies on Thursday, tracking the decline in Treasury yields after data showed an unexpected rise in US jobless claims in the week.
The number of Americans filing new jobless claims rose unexpectedly last week. While this increase likely underestimates the rapid improvement in labor market conditions as more sectors of the US economy resume operations and fiscal stimulus enters the market, it was bad enough to knock down the dollar.
The US dollar index, which measures the dollar against a basket of six currencies, fell 0.3% to 92.137, its lowest level since March 23. The dollar also hit a two-week low against the Japanese yen.
The data on Thursday followed the release at a previous meeting of the minutes of the March Federal Reserve meeting, which showed that Fed officials remain wary of pandemic risks – even as the US recovery picked up steam amid massive stimulus – and committed to pursuing monetary policy support service.
“As the labor market is heading in the wrong direction, he stressed that this week the Fed minutes highlighted how far the economy is from what the Fed considers healthy,” said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington. the note.
“The data that underpins the Fed’s dovish stance is likely to keep Treasury yields and the dollar anchored,” he said.
Fed Chairman Jerome Powell will speak at the IMF’s virtual conference later Thursday.
The estimated yield on 10-year Treasuries on Thursday was around 1.632% after falling below 1.63% overnight. At the end of last month, it was 1.776%, the highest in more than a year.
The US currency, which has gained in value this year, driven in part by higher US Treasury yields, has come under pressure in recent sessions as yields have declined.
Sterling stabilized against the dollar and euro on Thursday, halting losses after a sharp bout of profit-taking, with traders optimistic about its near-term outlook after a strong start to the year. The pound was up 0.14% against the dollar.
Amid dismal jobless claims data that weighed on the dollar, the Canadian dollar climbed higher, recovering from a weekly low.
Reporting by Sakib Iqbal Ahmed and Ritvik Carvalho; additional reporting by Kevin Buckland in Tokyo; editing by Larry King and Jonathan Oatis