Dollar Steady Ahead of Jackson Hole as BOJ Keeps Rate Hike Options Alive

The US dollar traded in a narrow range ahead of the Jackson Hole symposium, while the yen remained steady after BOJ Deputy Governor Ryozo Himino's speech. Himino did not rule out a rate hike next month but stopped short of explicitly signaling one.

The euro rose 0.07% against the US dollar to $1.1657, and the British pound traded at $1.3592. The Australian dollar strengthened 0.22% to $0.7183.

Himino's comments led markets to conclude that his remarks were not especially dovish, but some analysts believe there is still a chance for the yen to come under renewed downward pressure due to the lack of clear signals on future rate hikes. The BOJ's upcoming September 17 and 18 meeting will be crucial in determining the pace and scale of further tightening.

The US dollar index remained steady at 99.12, while the Personal Consumption Expenditures Price Index increased 3.7% in the 12 months through July, unchanged from June and slightly above the estimate. This kept market expectations for a Fed rate hike by year-end alive.