The dollar index advanced above 98.3 on Wednesday, extending its winning streak to a third session as investors awaited the Federal Reserve’s July meeting minutes for clues on the policy outlook.
The meeting was notable as the first since 1993 with two dissenting votes, as Fed governors Christopher Waller and Michelle Bowman favored a quarter-point rate cut instead of holding rates steady.
Markets will next focus on Fed Chair Jerome Powell’s remarks at the Jackson Hole symposium for signals on whether the central bank may push back against market expectations for easing.
Traders currently assign an 85% probability of a September rate cut and are pricing in roughly 54 basis points of reductions by year-end.
The greenback strengthened broadly, with the sharpest gains against the euro, sterling, and Australian dollar.