Dollar Holds Gains Ahead of Jackson Hole Amid Elevated US Inflation

The US dollar held near a one-week high on Thursday after hotter-than-expected US inflation data kept alive expectations for a possible Federal Reserve rate hike.

The dollar's value was steady at 99.14 by 02:36 ET (06:36 GMT), following a 0.3% rise in the previous session.

The data showed that the U.S. personal consumption expenditures price index rose 3.7% year-on-year in July, unchanged from June but above the 3.6% forecast.

This reinforced the case for the Fed to keep policy restrictive, with markets still pricing roughly a 60% chance of a rate hike next month, according to the CME FedWatch tool.