Dollar Hits 7-Month Low, Yen Gains as Traders Wait on Jackson Hole

FOREX - NEW YORK. The dollar fell to a seven-month low and the Japanese yen hit a more than one-week high as traders awaited comments from Federal Reserve Chair Jerome Powell this week likely to hint the U.S. central bank will start cutting interest rates in September.

A key focus on Powell’s speech at Jackson Hole on Friday will be whether he indicates that the Fed is likely to cut rates by 25 or 50 basis points. Odds of a larger cut have declined since data last week showed hotter-than-expected shelter inflation for July and also a strong retail sales report for the month.