Dollar Strengthens Ahead of Jackson Hole Amid Iran Ceasefire

The US Dollar strengthened on Wednesday ahead of the highly anticipated Jackson Hole Symposium. The US Dollar Index (DXY) rose towards 99.20 as traders locked in positions before the event. This move was partly driven by a reported ceasefire between the US and Iran, which improved risk sentiment and reduced demand for Gold.

The Greenback gained against most major currencies, with the notable exception of the Australian Dollar. The Aussie held onto its gains from earlier this week's inflation data, trading in the low-0.7100s. The EUR/USD pair retreated to the mid-1.1600s as traders became cautious ahead of the European Central Bank (ECB) accounts.

The USD/JPY exchange rate edged higher, staying above the 159.00 barrier. Meanwhile, Gold slipped back below $4,600 per troy ounce as safe-haven demand dwindled due to the stronger US Dollar and easing Gulf tensions.