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 dollar index last stood at 93.101 .DXY, 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.
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