Euro Weakens Amid Inflation Fears Ahead of Jackson Hole

The euro weakened against the US dollar on Thursday as investors awaited crucial economic data and speeches from central bank officials at the annual Jackson Hole Economic Symposium.

The European currency fell less than 0.1% to $1.1646, extending its losses for a second consecutive day, while the US Dollar Index rose around 0.1%, holding gains for a second session.

A report by Reuters suggested that the European Central Bank is preparing to raise interest rates in September amid growing concerns about persistent inflationary pressures driven by higher energy prices.

The ECB's policymakers believe the time has come to raise the key interest rate again, from 2.25% to 2.50%, with inflation running at around 3% and the eurozone economy showing signs of resilience.