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The dollar rose on Thursday, bouncing back from recent weakness after U.S. data showed fewer Americans sought jobless benefits last week.

The dollar index briefly pared gains before gaining ground following the claims data, which also showed 31.3 million people were receiving unemployment checks in mid-July, suggesting the U.S. labor market was stalling.

The dollar index, which measures the dollar against a basket of currencies, was last up 0.3% at 93.057. The index lost 4% in July. “The market is mostly just consolidating a little bit after this amazing weakness we’ve had of late,” said Axel Merk, president and chief investment officer at Merk Hard Currency Fund in Palo Alto, California.

At the same time, “the weakest currencies are the ones that have been doing the best in recent days.” The euro was down 0.1% at $1.1844 against the dollar after reaching a two-year high of $1.1916.

Analysts worried that programs such as unemployment benefits are covering up underlying damage to the economy. Investors were waiting for U.S. lawmakers to agree on a new package of support for the United States. With no sign of an agreement in sight, Republicans and Democrats remained trillions of dollars apart.

Reference: CNBC