The dollar was higher against other major currencies Wednesday and Thursday morning as investors remain focused on the upcoming Jackson Hole, Wyoming, summit. The conference, which will be attended by global central bankers, kicks off Thursday.
The dollar index gained 0.1% to hit 93.605. The index gained 0.5% the previous day.
Reports that German investor confidence was weaker than expected sent the euro tumbling on Tuesday, pushing the greenback higher. The Jackson Hole gathering further supported the dollar, pushing forex traders to reduce their short dollar positions.
Investors are awaiting speeches from European Central Bank head Mario Draghi and Federal Reserve Chair Janet Yellen on Friday. Neither is expected to announce policy messages, but their comments may provide clues as to the pace of interest rate hikes.
Draghi will also give a speech in Germany later.
Against the yen, the dollar gained 0.1% to trade at 109.71 yen. Last week, the greenback dipped to a four-month low against the yen, trading at 108.60 yen.
The euro eased against the greenback, falling 0.1% to trade at 1.1748. The pound also eased, falling 0.20% to trade at 1.2797.
The Aussie and kiwi also eased against the greenback. The Australian dollar fell 0.30% against its U.S. counterpart to trade at 0.7888. The New Zealand dollar fell 0.71% to trade at 0.7226.
The greenback gained against its Canadian counterpart, hitting a high of 1.2598 before settling at 1.2589.
The Canadian dollar was dragged down by a dip in oil prices, fueled by news that production increased in Libya. Investors are once again concerned that the global supply glut might increase.
Despite seeing gains, sentiment on the dollar remains fragile after comments from President Donald Trump at a rally in Arizona. Trump said he would be willing to shut down the government to get the funding needed to build the U.S.-Mexico wall.
Trump also threatened to terminate the NAFTA treaty with Mexico and Canada after the first round of talks to revamp the agreement failed to make progress.
In cryptocurrencies, bitcoin rose to a high of $4,246.4 on the Bitfinex exchange. The digital currency dipped to a low of $3,600 on Tuesday before recovering and closing the day at $4,074, up 1.79%.
Bitcoin prices have eased since reaching an all-time high of $4,489.1 on Aug. 17. The pullback in prices has investors speculating that the cryptocurrency may have reached its peak.
Ethereum, the second-biggest digital currency, gained 2.77% to trade at $323.3.
