Dollar steadies near 99.6 as traders await July Fed minutes after weak US data

The dollar index steadied around 99.6 on Wednesday after touching more than two-month lows earlier in the week, as investors awaited minutes from the Federal Reserve's July meeting for clearer signals on the U.S. interest-rate outlook. The Fed kept rates unchanged last month, but three officials dissented in favor of a rate hike, prompting markets to look for more detail on the split within the central bank. Traders currently see a 65% chance that policymakers will leave rates unchanged in September after a run of weak U.S. economic data, while expectations for a rate increase later this year have also eased. Investors are also watching Chairman Kevin Warsh's remarks at the Fed's Jackson Hole symposium later this month for signs he may try to reassure markets during a global bond selloff. The move comes as the 30-year U.S. Treasury yield hit a 19-year high this week and sovereign yields in other major economies climbed to their highest levels in decades.

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