Dollar's Fate Hangs on Key US-Ukraine Meeting and Fed Insights

The dollar remained stagnant with market focus on the upcoming meeting between President Trump and Ukraine's Zelenskiy, alongside anticipation for the Federal Reserve's Jackson Hole symposium. Speculations on interest rate cuts influence currency movements amid global economic tensions.

On Monday, the dollar remained stagnant as investors awaited a meeting between President Donald Trump and Ukraine's Volodymyr Zelenskiy. Market participants are also keenly watching the upcoming Jackson Hole symposium for monetary policy signals from the Federal Reserve.

Currency movements were subdued during early trading in Asia, although the dollar found some stability after last week's decline. The euro was stable, while sterling experienced a minor uptick. A notable factor affecting market sentiment is a reduced likelihood of a significant Federal Reserve rate cut next month, given recent robust U.S. economic data.

As tensions mount, the Trump-Zelenskiy meeting gains importance with potential geopolitical and economic implications. Concurrently, all eyes are on Fed Chair Jerome Powell's speech at Jackson Hole, where expectations of a rate cut in September remain high. Shifts in currency values, including the dollar's modest rise against the yen, reflect these complex economic narratives.

(With inputs from agencies.)