Dollar Climbs Ahead of Key Meetings and Fed Signals
The dollar showed gains on Monday as traders focused on meetings between President Trump and his counterparts, while also keeping an eye on the Federal Reserve's upcoming Jackson Hole symposium for policy signals. Key currency pairs like the euro and yen also experienced slight declines against the dollar.
The dollar saw gains on Monday as financial markets braced for a crucial meeting between U.S. President Donald Trump, Ukrainian President Volodymyr Zelenskiy, and several European leaders. This comes as traders also focus on the Federal Reserve's Jackson Hole symposium, seeking monetary policy signals amid muted currency movements.
With expectations of a rate cut by the Federal Reserve next month, the dollar found support, though uncertainties remain. Money markets anticipate an 83% probability of a rate cut, after recent robust U.S. wholesale and retail sales data. Federal Reserve Chair Jerome Powell is scheduled to speak at the symposium, despite the central bank's twin goals of stable prices and low unemployment presenting challenges.
As financial markets ponder potential paths to peace in Ukraine, the dollar edges higher against a basket of peers. With President Trump pushing Ukraine towards accepting a peace deal with Russia, market observers remain cautious, speculating that the dollar may stay under pressure.
(With inputs from agencies.)
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