The dollar stabilized near its highest level in two decades before Fed Chairman’s speech

The dollar held near two-decade highs against other major currencies on Friday ahead of a widely anticipated speech by Federal Reserve Chairman Jerome Powell at a Jackson Hole symposium.

Traders are awaiting indications about the Fed’s monetary tightening plans to curb inflation when Powell speaks at 1400 GMT.

The dollar index, which measures the greenback’s performance against six major currencies, has risen steadily over the past two weeks and is very close to a two-decade peak of 109.29 recorded in mid-July. In the latest trading, it was stable at 108,470.

The Fed will get two more major reports on inflation and more employment data before its September 20-21 meeting.

In Europe, higher energy prices caused by Russia’s invasion of Ukraine lowered the economic outlook and weighed on the euro and the British pound.

And the pound fell 0.5% to $1.17750, as the relevant regulators in Britain expected home energy bills to rise 80%, and warned of a “crisis” that needed urgent government action.

The euro rose 0.2 percent to $0.99865.

The dollar rose 0.3 percent against the Japanese yen, which last traded at 136.900 yen to the dollar.