Dollar Holds Firm Ahead of Warsh's Jackson Hole Speech

The US dollar held firm near its one-week high against major peers on Friday (Aug 28), as investors awaited Federal Reserve Chairman Kevin Warsh's speech at the Jackson Hole symposium.

The euro and sterling were softer against the greenback, last trading at $1.1646 and $1.3589, respectively, setting them up for their first weekly drop in a month.

Analysts see a greater likelihood of the Fed leaving interest rates on hold through the end of this year, which could weigh on the dollar.

Volkmar Baur, an FX & commodity analyst at Commerzbank, noted that even though Warsh has emphasized the 2 per cent inflation target is non-negotiable, he has never explicitly mentioned the PCE deflator in this context.