Global Markets Jitter: Currency Movements and Policy Hints from Jackson Hole

The dollar weakened against major currencies as markets analyzed the results of a summit involving U.S., Europe, and Ukraine leaders, alongside anticipation of the Federal Reserve's annual symposium. European currencies showed resilience amid talks of ending the Russia-Ukraine conflict. Focus shifts to Fed's rate outlook at Jackson Hole.

The dollar slipped against major global currencies on Tuesday amid evaluations of a summit outcome involving leaders from the U.S., Europe, and Ukraine. While the euro and sterling made slight gains, President Trump's assurances to Ukraine bolstered European unity even as the markets remained largely unchanged.

President Trump and Ukrainian leader Zelenskiy's hoped-for talks with Russia's Putin did not bring clear direction to currency markets. European stocks were buoyed, despite disruptions in energy costs, as investor activity slowed in the summer holiday season and market liquidity thinned.

Eyes now turn to the Federal Reserve's symposium in Jackson Hole, with Fed Chair Jerome Powell expected to outline economic prospects. Markets keenly await signs of a rate cut, but the Fed remains cautious on committing to a path without further data assimilation.

(With inputs from agencies.)