Market News
Dollar recoups some losses as focus shifts to Fed remarks at Jackson Hole - REUTERS
Summary
- Dollar steady ahead of Jackson Hole meeting
- Yen barely moves after BOJ comments on possible rate hikes
- Markets see chance of a BOJ hike next month
- US weekly jobless claims data due
Dollar Recovers
The U.S. dollar showed signs of recovering some of the previous week's losses on Thursday as investors awaited signals on the Federal Reserve's monetary-policy outlook from the Jackson Hole symposium.
The dollar received some support from U.S. inflation data showing that price pressures remained stronger than economists had anticipated.
U.S. Inflation Remains Sticky
Data released in the previous session showed that U.S. inflation rose more than expected in July.
The stronger inflation reading reinforced expectations that U.S. interest rates could remain restrictive through the end of the year.
Persistently elevated inflation could also reduce the Federal Reserve's scope to ease monetary policy and keep the possibility of further tightening in focus.
U.S. Economy
Separate economic data confirmed that the U.S. economy expanded at an annualised rate of 1.5% in the second quarter.
The combination of persistent inflation and moderate economic growth leaves investors closely focused on the Federal Reserve's assessment of the balance between inflation risks and economic activity.
