The dollar is attempting to partially recover last week's losses - investors are awaiting signals from the Fed

The US dollar showed signs of recovering part of last week's losses on Thursday, as investors await signals from the Jackson Hole symposium regarding the future of Federal Reserve monetary policy.

The dollar's strength was supported by the previous day's data, which showed that inflation in July rose more than expected. This reinforced expectations that interest rates could remain elevated through the end of the year. Other data confirmed that the US economy grew by 1.5% in the second quarter.

On the currency market:

The euro fell 0.1% against the dollar to $1.1639; The British pound declined 0.1% to $1.3577; The yen weakened nearly 0.1%, dropping to 159.45 against the dollar; The dollar index rose to 99.158, gaining about 0.3% this week after falling 0.8% last week.

Elias Haddad, Head of Global Markets Strategy at Brown Brothers Harriman, noted that a key supporting factor for the dollar remains the relative strength of the US economy compared to other major economies.

According to Haddad's assessment, the Fed may not need to change rates before year-end, even though markets are pricing in a different scenario.

Currently, traders see almost no chance of a rate change in September, though they assign roughly a 74% probability that the Fed will raise rates by at least 25 basis points by December. This expectation is being reinforced by tensions in the Middle East, which continue to put pressure on oil prices.

However, according to analysts, if the Fed shifts to a more moderate stance and doesn't raise rates at all this year, further dollar gains could be limited.

Haddad noted that two significant obstacles remain for the dollar: the risk of markets repricing toward a more dovish Fed policy, and investors' low confidence in the US fiscal position.