Dollar index holds around a one-week high

Dollar index is holding near a one-week high on Friday as investors cautiously awaited Federal Reserve Chair Kevin Warshs speech at the annual Jackson Hole symposium later in the global day for clues about the outlook for US interest rates. DXY is holding above 99 mark on higher than expected inflation levels. Recent July PCE inflation metrics arrived higher than anticipated at 3.7% on year, fueling bets of an additional interest rate hike by December. Escalating economic sanctions aimed at isolating Iran's banking and trade networks have also sparked defensive safe-haven demand for the US currency. Stronger upside for the DXY is however constrained by Treasury Secretary Scott Bessent's aggressive expansion of long-dated government bond buybacks.

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