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NEW YORK (CNNMoney.com) -- The dollar fell against its major rivals Thursday as investors flocked to higher yielding assets such as stocks and commodities on better-than-expected earnings results and jobs data.

The greenback slid against the euro to $1.4791 and against the pound to $1.6071. The dollar also fell to ¥88.3930.

The dollar's safe haven demand evaporates when investors become more optimistic and shift money into riskier markets.

"Equities are rising strongly and risk appetite is improving, proving to be dollar negative," said Kathy Lien, director of currency research at Global Forex Trading.

Stocks climbed Thursday, with the Dow Jones industrial average briefly posting triple-digit gains after component Alcoa (AA, Fortune 500) posted better-than-expected earnings and revenue.

The Labor Department's report on jobless claims also boosted investors' confidence. The number of first-time filers for unemployment insurance fell to a nine month low last week.

While optimism in the U.S. markets seemed to be strong, Lien said that economies are improving at quicker paces abroad and the risk of a double dip recession in the United States is still valid.

The Reserve Bank of Australia, the Bank of England and the European Central Bank all addressed their monetary policies this week.

While the Reserve Bank of Australia was the only central bank to announce a rising interest rate, Lien said the dollar's movement Thursday is "all about relative interest rate expectations."

The dollar has been under pressure because the Federal Reserve has kept interest rates near zero.

"The Federal Reserve is sitting comfortably with the current level and has shown zero urgency to implement an exit strategy," she said. "It doesn't want to change its action because the path to a stronger currency is through a weaker one."

Lien said the Fed will maintain its monetary policy and the weak dollar as long as it can as insurance to an economic recovery.