Early trade in New York: Dollar at one-week high as investors seek safety

The dollar hit a one-week high on Thursday as investors fled to safe-haven assets following the release of weekly US jobless data showing a record 22 million Americans have sought unemployment benefits in the last month.

The dollar rose 0.45% to 100.08, a one-week high against a basket of six major currencies, after snapping a four-day losing streak the previous day as equity market gains fizzled.

Initial claims for state unemployment benefits dropped 1.370 million to a seasonally adjusted 5.245 million for the week ended April 11, the government said. Record jobless filings underscore the deepening economic slump caused by the coronavirus outbreak.

"The dollar has fared better this week as record weak data suggested a longer and more uncertain road to recovery, a dimmer outlook that's revived appetite for haven assets," said Joe Manimbo, senior market analyst at Western Union Business Solutions.

The greenback has gained broadly during the crisis as investors scramble for the safety of the world's reserve currency, although it is down from its late-March highs since the US Federal Reserve unleashed a stream of measures to support the economy.

The yen weakened 0.25% against the dollar, as Japan extended a state of emergency beyond major cities to the entire nation. The dollar rose against currencies considered riskier bets, edging up against the British pound and the Australian and New Zealand dollars.