Dollar index steady; Jackson Hole meeting in focus

© Reuters. FILE PHOTO: Illustration photo of a U.S. Dollar note© Reuters. FILE PHOTO: Illustration photo of a U.S. Dollar note

By Masayuki Kitano

SINGAPORE (Reuters) – The dollar held steady against a basket of currencies on Tuesday, with traders focusing on the annual central banking conference in Jackson Hole this week for insights on the outlook for monetary policy.

The last stood at 93.101 (), having retreated from a three-week high of 94.145 set last Wednesday.

The near-term focus is on a speech by U.S. Federal Reserve Chair Janet Yellen on Friday at the Fed’s annual central banking conference in Jackson Hole, Wyoming.

If Yellen’s speech increases market expectations that the Fed will raise interest rates in December, that could prompt investors to unwind bearish bets against the dollar, and lend the greenback some support, said Stephen Innes, head of trading in Asia-Pacific for OANDA in Singapore.

“This could be a platform for the U.S. dollar,” Innes said, referring to the Jackson Hole conference.

The greenback has been hampered in recent days by renewed investor concerns about the Trump administration’s ability to implement its economic policy agenda.

Persistent doubts about the prospects for another Fed interest rate hike this year, at a time of subdued U.S. inflation, have also weighed on the dollar.

Against the yen, the dollar edged up 0.2 percent to 109.13 , having edged up from Monday’s intraday low near 108.63 yen.=>

The euro held steady at $1.1815 , consolidating after rising 0.5 percent on Monday.=>

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