NEW YORK: The US dollar fell to a two-week low against a basket of currencies on Thursday, tracking Treasury yields lower, after data showed a surprise rise in US weekly jobless claims.

The number of Americans filing new claims for unemployment benefits unexpectedly rose last week. While the increase likely understates rapidly improving labour market conditions as more parts of the US economy reopen and fiscal stimulus kicks in, it was bad enough to knock down the greenback.

The US Dollar Currency Index, which measures the greenback against a basket of six currencies, was 0.3% lower at 92.137, its lowest since March 23. The dollar also hit a two-week low against the Japanese yen.

The benchmark 10-year Treasury yield was around 1.632% on Thursday, after dipping below 1.63% overnight. It hit 1.776% late last month, its highest in more than a year.

Sterling steadied against the dollar and the euro on Thursday, stanching its losses after a bruising bout of profit-taking, with traders optimistic about its near-term prospects after a strong start to the year. The pound was up 0.14% against the greenback.