Dollar holds steady ahead of US PCE inflation data

The dollar index held steady near 99 on Wednesday as investors awaited the latest US PCE price index report, the Federal Reserve’s preferred measure of inflation.

The data comes ahead of Fed Chair Kevin Warsh’s speech at the annual Jackson Hole symposium on Friday, where he is not expected to provide clear guidance on the central bank’s policy decision in September.

Meanwhile, the dollar remained near its lowest level in more than three months as investors continued to assess the implications of the Treasury Department’s expanded debt buyback program.

Markets are concerned that the plan could provide only a temporary solution while reviving worries about the risks of a US debt crisis and further dollar weakness.

Elsewhere, oil prices fell for a third straight session, easing inflation concerns and reducing safe-haven demand for the greenback.