Dollar steadies ahead of Jackson Hole

The US dollar anchored near key levels as traders awaited guidance from the Jackson Hole symposium, with sentiment supported by resilient US data and a Fed inclined to remain patient on rate cuts. Analysts including UOB said inflation remains above target but not accelerating, keeping yields elevated and the dollar supported, though upside is capped by global uncertainty and policy paths in Europe and Japan. Market focus centered on technical ranges for the dollar index and the potential for Powell’s Jackson Hole remarks to tilt sentiment hawkish or dovish, depending on the tone. The yen hovered around 159 per dollar as BOJ officials signaled possible rate hikes but avoided a clear signal, leaving September timing uncertain. Inflation at about 3.7% in the PCE data kept the Fed’s action path in play, sustaining a fragile dollar tone amid mixed signals from major central banks. Taken together, the reports depict a cautious dollar environment, with positioning and upcoming central bank commentary shaping near-term moves.