Key facts
- The U.S. dollar traded near a one-week high ahead of the Jackson Hole symposium.
- Investors await Federal Reserve Chair Kevin Warsh's speech for monetary policy and inflation outlook clues.
- Sticky U.S. inflation data supports expectations for potential rate hikes.
- The euro and sterling were subdued near one-week lows against the dollar.
- The yen remained little changed, surrendering some intervention-driven gains.
- Bitcoin gained 0.5% and was on track for a significant monthly rise.
The U.S. dollar held steady near a one-week high against major peers as investors awaited Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium for clues on his policy outlook. The euro and sterling were subdued near one-week lows against the greenback, while the yen was little changed, having surrendered part of its intervention-driven gains. The dollar index, measuring the currency against six major peers, was also little changed. Despite a weekly gain, the dollar index remains on track for a second straight monthly decline following U.S. Treasury Secretary Scott Bessent's comments on increasing buybacks of longer-dated bonds, which fueled concerns about debasing the dollar. Market participants are keenly awaiting Warsh's debut speech for insights into his approach to monetary policy and inflation control, though expectations for explicit forward guidance on rates were tempered by his past opposition. Some Fed officials have reiterated concerns about U.S. inflation and signaled openness to rate hikes. Traders are pricing in approximately 35% odds of a rate hike at the Fed's September meeting, rising to 75% by December, with benchmark U.S. 10-year Treasury yields at 4.676%. In cryptocurrencies, bitcoin gained 0.5% to $80,620.33, on track for a significant monthly gain. The Australian dollar rose nearly 0.1% to a three-month high, while the New Zealand dollar climbed 0.2%. The Canadian dollar held flat and was heading for a second month of decline amid escalating trade tensions with the U.S. Brent crude futures hovered near $90 a barrel following a report that President Donald Trump rejected re-establishing terms of a memorandum of understanding with Iran.