Dollar Faces Crucial Test as September Begins

The US dollar ended August with only a modest loss, closing at 99.428, down 0.47% over the month.

The DXY traded between 98.800 and 100.014, but Treasury actions weighed on the currency by raising fresh questions over US policy credibility.

Kevin Warsh's hawkish Jackson Hole speech helped the dollar recover into month-end, with his message driving yields higher.

The two-year yield ended August at 4.344%, and the 10-year at 4.752%, but the dollar has not fully followed the rise in US yields.