Dollar index steady near 99.1 ahead of Warsh Jackson Hole speech
Dollar index was little changed around 99.1 as investors awaited Federal Reserve Chair Kevin Warsh’s Jackson Hole speech for US rate outlook clues. Greenback was tracking a slight weekly rise after hotter US inflation.
The dollar index was little changed around 99.1 on Friday as investors awaited Federal Reserve Chair Kevin Warsh’s speech at the annual Jackson Hole symposium later in the global day for clues about the outlook for US interest rates.
Still, the greenback was on track to end the week slightly higher as a hotter-than-expected US inflation this week reading supported expectations for a Fed rate increase before year-end, with the probability of a hike by December remaining above 70%.
For the upcoming September meeting, markets are currently pricing in around a 65% chance that the Fed will keep rates unchanged.
Meanwhile, Kansas City Fed President Jeff Schmid said monetary policy is not restraining the economy.
Elsewhere, investors continued to assess the implications of the US Treasury’s expanded debt buyback program, which heightened concerns about the risks of a US debt crisis and potential dollar weakness.