Dollar Steady Ahead of Warsh's Jackson Hole Debut

The US dollar remained steady near its one-week high against major currencies on Friday as investors awaited the highly anticipated speech by Federal Reserve Chairman Kevin Warsh at the Jackson Hole symposium. The event, scheduled for 1400 GMT, is expected to provide valuable insights into the Fed's monetary policy and inflation outlook.

Inflation has been persistently above 2%, leading traders to price in at least one 25 basis point interest rate hike this year, which in turn supports the dollar. Analysts expect Warsh to focus on the five task forces he established at the start of his term, rather than offering guidance on monetary policy.

The euro and yen were a touch softer against the greenback, with the euro last trading at $1.1646 and the yen at 159.645 per dollar. The dollar index, which measures the currency against six major peers, was at 99.18, just below Thursday's one-week high of 99.26.

However, some analysts believe that a dovish signal from Warsh could lead to a decline in the dollar. Volkmar Baur, an FX & commodity analyst at Commerzbank, noted that the Fed may be considering applying a different measure of inflation, which could nip rate hike expectations in the bud.