Dollar jumps 3-week high ahead of Powell's speech

Dollar rose today to 3-week high against a basket of currencies, heading for the second weekly gain in a row, as demand increased after the Federal Reserve minutes lower the market's bets for a series of US rate cuts this year, ahead of Jerome Powell's speech at the Jackson Hole Economic Forum.

Dollar index rose by 0.2% to 98.45 points (highest since August 1st) from the opening of 98.19 points, with a los 98.18 points.

Dollar shed 0.1% yesterday, after weak manufacturing data in the US, which showed a contraction during August for the first time in 10 years.

During this week, dollar rose by 0.3%, heading for the second weekly gain in a row, as demand increased, while other major currencies face negative pressures, especially euro and sterling.

This rise comes after the minutes of the last meeting of the Federal Reserve eased the market's bets of a series of rate cuts during this year.

The minutes of the July 30-31 meeting, which saw the first US interest rate cut since 2008, showed that the US policy makers saw the rate cut as a readjustment, while not a sustained easing of monetary policy.

While the markets are anticipating Jerome Powell's speech by 14:00 GMT, which in case of it contained a less pessimistic view unlike forecasts, dollar will extend its gains.