The U.S. dollar went sliding against most of it peers on Thursday amid hopes of fiscal stimulus in the U.S., and on the Federal Reserve’s comments that it would keep interest rate near zero for a considerable length of time.

The Fed also said it will continue it asset purchase program until the economy shows substantial progress towards the bank’s goals of maximum employment and price stability.

Following a meeting with other congressional leaders, Senate Majority Leader Mitch McConnell, R-Ken., said the talks have made “major headway toward hammering out a targeted pandemic relief package that would be able to pass both chambers with bipartisan majorities.”

Senate Minority Leader Chuck Schumer, D-N.Y., agreed that the two sides are “close to an agreement” but cautioned that it’s “not a done deal yet.”

Meanwhile, House Speaker Nancy Pelosi’s Deputy Chief of Staff Drew Hammill said the Speaker, Schumer and Treasury Secretary Steven Mnuchin spoke Wednesday night as part of a series of phone conversations to complete the relief negotiations.

In economic news today, Data from the Labor Department showed initial jobless claims rose to 885,000 in the week ended December 12, an increase of 23,000 from the previous week’s revised level of 862,000.

The dollar index, which tumbled to 89.73, was last seen at 89.78, down 0.74% from previous close.

Against the Euro, the dollar weakened to $1.2271, losing nearly 0.6%. Eurozone consumer prices declined for the fourth straight month in November, falling by 0.3% on yearly basis, final data from Eurostat revealed. Core inflation, which excludes prices of energy, food, alcohol and tobacco, held steady at 0.2% in October.

The Pound Sterling was stronger against the dollar, fetching $1.3576 a unit, about 0.5% more than Wednesday’s close. The Bank of England’s nine-member monetary policy committee today voted to hold the interest rate at 0.1% and the quantitative easing at GBP 895 billion, as widely expected.

The Yen firmed up to 103.08 a dollar, gaining from 103.46.

The Aussie was gaining nearly 0.7% against the greenback, with the AUD-USD pair at 0.7628.

The Swiss franc was firmer, trading at 0.8842, gaining about 0.14%. The Swiss National Bank retained the policy rate and interest on sight deposits at the SNB at a record low -0.75%, aiming to stabilize economic activity and price developments. The banks expects the country’s GDP to shrink by around 3% this year.

Switzerland’s exports increased by a real 4.6% in November, rising for the first time in three months in November, data from the Federal Customs Administration showed. Imports grew 4.8% monthly in November.

The Loonie was stronger at 1.2724 a dollar, compared to Wednesday’s close of 1.2743.

The material has been provided by InstaForex Company –