The dollar was near a two-week low against its major trading partners ahead of data forecast to show inflation slowed and before central bankers meet at an annual conference in Jackson Hole, Wyoming.
The Bloomberg U.S. Dollar Index, which tracks the greenback against 10 major currencies, completed its first weekly drop in a month on Aug. 15. Federal Reserve Chair Janet Yellen will deliver a speech on Aug. 22. Futures traders trimmed bullish bets on the U.S. currency against the yen by the most since April. Demand for the yen eased after Russia’s foreign minister met with his Ukrainian counterpart in Berlin.
“If annual inflation rises around consensus at 2 percent, it justifies the Fed retaining a low interest-rate policy,” said Toshiya Yamauchi, a senior analyst in Tokyo at Ueda Harlow Ltd., which provides margin-trading services. “That’ll keep U.S. yields depressed and put a lid on dollar strength. It’s hard to see Yellen taking a hawkish tone in Jackson Hole.”
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