Dollar continues to drop on US stimulus hopes

The US dollar fell against its peers on Thursday, deepening losses for the third straight day due to weak demand and hopes about a huge US stimulus package by the new US President Joe Biden, which is aimed at helping in the US economy recovery, ahead of the US weekly unemployment claims reading.

The dollar index fell more than 0.3% to 90.15 points, after opening at 90.41 and hit a high of 90.45.

The greenback slipped less than 0.1% yesterday, in the second straight daily loss.

The US dollar's drop comes due to slowing demand amid high market sentiment and improved appetite in high risk currencies due to hopes about a huge stimulus package by the new US President Joe Biden's administration.

Joe Biden's inauguration ceremony took place on Wednesday at the Capitol building in Washington, and he was sworn in as the 46th US president.

Biden called on Americans to unite and stressed that he will always work for democracy in his country. Biden is also expected to inject a $1.9 trillion Covid relief bill.

At 13:30 GMT, the US unemployment claims for the week ending January 16 are expected to reach 0.930 million from 0.965 million the previous week.

The Philly Fed manufacturing index is expected to reach 11.2 in January, from 11.1 in December.