The United States of America dollar, on Wednesday, August 23, struggled against its rivals with a broad trade-weighted index .
The Greenback depreciated by 0.2 percent on the day to 93.35, with very little in terms of top tier economic data to change the dollar outlook until Yellen’s speech.
The dollar index against a basket of six major currencies was down slightly at 93.412 .DXY after rising 0.5 percent the previous day.
The dollar was down slightly against the yen at 109.38 yen JPY=, back near the day’s low plumbed after Trump told supporters in Arizona “If we have to close down our government, we’re building that wall”.
The greenback remained clear of a four-month low of 108.605 yen plumbed last week, when turmoil in the White House and geopolitical tensions took a toll on the currency.
Trump’s suggestion the NAFTA trade treaty could be scrapped to jumpstart ongoing renegotiations also sent Mexico’s peso down 0.6 percent against the dollar. MXNUSD=R
The euro was up 0.2 percent at $1.1784 EUR= after slipping about 0.5 percent Tuesday on weaker-than-expected German investor confidence.
Speeches from European Central Bank President Mario Draghi and Fed Chair Janet Yellen will headline the annual Jackson Hole event, although neither are expected to announce any significant policy, Reuters reports.
“The ECB is clearly very concerned about the recent appreciation in the euro … and recent ‘misinterpretations’ by traders to Draghi’s comments will likely mean he steers clear (of discussing policy) once again,” said Craig Erlam, senior market analyst at OANDA.
Draghi gave a speech at Lindau, Germany, on Wednesday but did not discuss the ECB’s current monetary policy.
Political noise also weighed on the greenback’s outlook though some market strategists said the dollar may be ripe for a bounce.
