Dollar Soars on Warsh's Hawkish Jackson Hole Comments

The US dollar strengthened against major currencies on Friday after Federal Reserve Governor Kevin Warsh's hawkish comments at the Jackson Hole symposium.

Warsh emphasized the need for continued vigilance against inflation, suggesting that the Fed may keep interest rates higher for longer than markets anticipate.

The dollar index rose 0.2% to 104.30, bringing its weekly gain to nearly 1%, and marking the strongest weekly performance in over a month.

Market reactions included a 0.3% fall of the euro against the dollar to $1.0825, while emerging market currencies felt the impact with a 0.4% drop in the MSCI emerging market currency index.