Dollar Bounces Back Ahead of Key Federal Reserve Speech

The U.S. dollar rebounded from a 13-month low against the euro, influenced by market anticipation of Federal Reserve Chair Jerome Powell's upcoming speech. Traders are speculating the extent of an imminent interest rate cut, with mixed data adding to uncertainty. Global economic conditions also impact currency dynamics.

The U.S. dollar rallied from a 13-month low against the euro on Thursday, driven by anticipation ahead of Federal Reserve Chair Jerome Powell's upcoming speech. The recent dollar weakness is seen by some experts as overstated.

The dollar has been under pressure due to concerns about a slowing U.S. economy and expectations of a rate cut by the Federal Reserve. However, the exact scale of the anticipated rate cut at the Fed's September meeting remains uncertain.

Market dynamics have been further influenced by a recent employment report that showed slower job growth and a rising unemployment rate. Traders are now keenly watching Powell's comments for cues on future monetary policy.

(With inputs from agencies.)