Dollar Strengthens Ahead of Powell's Jackson Hole Speech

The U.S. dollar maintained a strong position against the euro and sterling on Friday as the investing community reassessed their rate cut expectations ahead of Federal Reserve Chair Jerome Powell's highly awaited address at the Jackson Hole symposium.

Amid signs of a subdued U.S. labor market that initially fueled hopes for lower borrowing costs next month, those expectations have been reevaluated due to data signaling inflationary risks and cautious remarks from Federal Reserve officials.

The dollar has shown resilience, reflecting investor caution surrounding Powell's potential steadfast stance. As traders predict lower odds for a rate cut in September, the currency index marked a weekly increase, ending a two-week declining trend.

(With inputs from agencies.)