US dollar holds near 99 as traders await Jackson Hole Fed signals

The US dollar held near 99.00 in early European trading on Monday as investors looked to the Federal Reserve's Jackson Hole Symposium, an annual policy conference, for signals on interest rates. The dollar index (DXY), which tracks the greenback against six major currencies, was at approximately 99.05, up 0.1% on the day, after rebounding from a recent low of 98.70 earlier this month. Resilient US economic data, a relatively strong labor market, easing inflation pressures and safe-haven demand linked to growth concerns in Europe and China have supported the currency. Markets have reduced expectations for aggressive rate cuts and now price about 75 basis points of easing by December, according to CME FedWatch, although the timing and pace remain uncertain. Fed Chair Jerome Powell's Friday speech at the symposium will be closely watched: a hawkish message could lift the dollar, while a dovish tone could push it lower. The dollar's path matters for exporters, multinational earnings, emerging-market debt costs and local currencies. Traders are expected to keep the DXY in a tight range until Powell speaks, with one senior FX analyst saying a pushback against rate-cut expectations could take the dollar above 99.5, while a dovish stance could open a move toward 98.

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US dollar holds near 99 as traders await Jackson Hole Fed signals - CoinPost Terminal