Dollar Holds Firm Ahead of Warsh Speech at Jackson Hole Symposium
The US dollar is holding firm near its one-week high against major peers as investors await Federal Reserve Chairman Kevin Warsh's speech at the Jackson Hole symposium.
Warsh's debut speech in Wyoming is scheduled for 1400 GMT. Many market participants are looking for guidance on monetary policy and the US Treasury's efforts to bring down long-term borrowing costs during a period of volatility in bond markets.
Despite repeated emphasis from Warsh that the Fed's 2% inflation target is non-negotiable, he has never explicitly mentioned the PCE deflator. Analysts believe this could indicate that the Fed is considering alternative measures of inflation, which would likely dampen rate hike expectations and put pressure on the dollar.
The euro and sterling are softer against the greenback, with the euro trading at $1.165 and sterling at $1.358, respectively. The yen has weakened to 159.44 per dollar as investors assess Tokyo inflation data.