The dollar index was little changed around 99 on Wednesday as investors awaited the latest US PCE price index release, the Federal Reserve’s preferred inflation gauge. The data precedes Fed Chair Kevin Warsh’s speech at the annual Jackson Hole symposium on Friday, where he is not expected to offer explicit guidance on the central bank’s September policy decision.
At the same time, the dollar hovered near its lowest level in more than three months, as markets continued to weigh the impact of the Treasury Department’s expanded debt buyback program. Investors fear the initiative may offer only a short-lived fix while reigniting concerns about the risk of a US debt crisis and renewed dollar weakness.
Elsewhere, oil prices declined for a third consecutive session, easing inflation pressures and diminishing safe-haven demand for the greenback.
