The US dollar held its gains in Asia on Monday after posting five straight weeks of increases. Investors are looking to Federal Reserve chair Jerome Powell's speech at this week's Jackson Hole symposium for clues about the USD rate outlook.
The greenback made weekly gains against the euro and yen. It surged over 1% versus the Aussie and kiwi as US Treasury yields jumped on expectations of higher rates for longer.
In China, a smaller-than-expected rate cut disappointed markets already worried over slowing growth. The yuan weakened to over 7.30 per dollar while proxy currencies like the Aussie also slid.
Apart from waiting in vain for Chinese stimulus, Jackson Hole is the major market focus this week. Powell may signal decades of ultra-low rates are over and the Fed prefers restrictive real rates.
Ten-year US yields rose to a 10-month high near 4.3%, within sight of multi-year peaks. The dollar is on intervention watch against the yen after recent gains. Bitcoin nursed Jackson Hole jitters at $26,000.
Powell's speech on Friday could determine if the USD rally extends further or if a pullback is on the cards. Markets will closely analyze his comments on the structural global economy shift.
