Dollar Rangebound Ahead of Inflation Data and Jackson Hole Symposium

The US dollar remained in a narrow trading range on Wednesday ahead of inflation data releases from major economies and the Jackson Hole symposium. The greenback was pinned against most of its major peers, with investors awaiting the release of PCE data for July later that day.

Signs of Middle East de-escalation, including plans to return US diplomatic staff and efforts to reopen the Strait between Iran and Oman, weighed on oil prices and supported broader risk sentiment. This led to a 2.1% drop in Brent crude to $86.68.

The Australian dollar was up 0.1% at $0.7172 after data showed trimmed mean CPI inflation rose at an annualized rate of 3.6%. However, the US dollar weakened 0.1% against the Canadian dollar to C$1.38405 per dollar.

Cryptocurrencies continued their recent surge, with Bitcoin up 0.8% at $78,829.03 and ether up 0.7% at $2,453.10. The Bank of Japan's Governor Kazuo Ueda will not attend the Jackson Hole gathering due to a schedule conflict.