Dollar pushes higher as markets await Jackson Hole
Investing.com - The dollar pushed higher against a basket of the other major currencies on Tuesday as investors awaited the annual gathering of central bankers in Jackson Hole later this week for clues on how policymakers view the economy.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.23% to 93.22 by 03:21 a.m. ET (07:21 a.m. GMT).
The dollar was higher against the yen, with USD/JPY climbing 0.4% to 109.42, pulling back from last week's low of 108.59, which was the weakest level in four months.
The greenback has weakened in recent sessions amid renewed investor concerns about the Trump administration's ability to deliver on its economic policy agenda.
Persistent doubts about the prospects for a third interest rate hike by the Federal Reserve this year have also fed into dollar weakness.
Lower rates typically weigh on the dollar by making U.S. assets less attractive to yield-seeking investors.
Market participants are awaiting comments from Fed Chair Janet Yellen at the annual central banking conference on Friday after last weeks Fed minutes showed that officials were split over the timing of future rate hikes amid concerns over weak inflation.
The euro was lower against the dollar, with EUR/USD down 0.23% to 1.1789.
The euro has weakened somewhat since hitting a two-and-a-half year high of 1.1909 against the greenback earlier this month, but has rebounded from last week’s three-week trough of 1.1661.
Market watchers are awaiting remarks from European Central Bank President Mario Draghi at Jackson Hole on Friday, but he is not expected to deliver any new policy message, according to reports.
The euro was at 10-month highs against the broadly weaker sterling, with EUR/GBP at 0.9163.
The pound was also lower against the greenback, with GBP/USD down 0.25% to 1.2869.
Sterling has been pressured lower by growing expectations that the Bank of England will keep interest rates on hold in the coming months amid concerns over the economic impact from Brexit.
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