The US dollar stayed close to its highest level in a week on Friday as investors waited for comments from Federal Reserve Chairman Kevin Warsh at the Jackson Hole symposium. Markets are hoping his remarks will provide more clarity about future interest rate decisions and the direction of US monetary policy.
The euro traded near $1.1652, while the British pound hovered around $1.3597. Both currencies slipped against the dollar during the week, although they are still on track to post gains for a second straight month.
The Japanese yen remained mostly steady at 159.34 per dollar. While the yen has given back some of the gains it made after Japanese authorities stepped in to support the currency, it is still heading for a monthly gain of about 1.3%.
Meanwhile, the US Dollar Index, which tracks the dollar against six major currencies, was little changed at 99.13 during early Asian trading.
The index has gained around 0.3% this week, but it is still expected to finish August down about 0.7%, marking a second consecutive monthly decline. The weakness followed comments from US Treasury Secretary Scott Bessent about expanding long-term bond buybacks, which raised concerns that efforts to lower borrowing costs could reduce the dollar’s appeal.
Investors are now fully focused on Warsh’s appearance at Jackson Hole, as it will be his first speech at the event. Traders are eager to hear his views on inflation, interest rates, and the overall path of the US economy.
In the cryptocurrency market, Bitcoin rose 0.5% to around $80,620. It is on track for a gain of nearly 30% in August, which would be its strongest monthly performance since late 2024.
Elsewhere, the Australian dollar edged up 0.1% to $0.72, reaching its highest level in three months as expectations of another interest rate increase continue to grow. The New Zealand dollar also moved higher, gaining 0.2% to $0.5960.
