The Dollar declined from a two-month high on Wednesday as investors focused on the Federal Reserve chair’s upcoming speech for indications on the trajectory of monetary policy.

The Dollar index – measuring the greenback against six peers – declined 0.145% to 103.44, yet remained not too far from the two-month high of 103.71 reached on Tuesday. For August the index has risen 1.6% and is on track to end a two-month losing run, Reuters reports.

Investors are eyeing the Federal Reserve’s central bank symposium at Jackson Hole, Wyoming this week, with the focus on chair Jerome Powell’s speech at the event, taking place from 24th to 26th August. 

Recent strong US economic data has helped to ease fears of a looming recession, yet with inflation over the Fed’s 2% target, investors are concerned the Fed may hold rates higher for longer, Reuters reports. 

“Markets are looking out for hints of earlier (policy) shifts or extensions of higher for longer,” said currency strategist, Christopher Wong at OCBC in Singapore.

Elsewhere, in India the Rupee held above 83 to the Dollar on Wednesday, and at the time of writing stood at 82.94 to the Dollar. 

The Rupee recently dipped to a low of 83.16, yet managed to recover following repeated intervention from the Reserve Bank of India (RBI) in non-deliverable forwards and on over-the-counter, the Reuters report adds.

“The RBI looks quite committed to preventing a record low (for the Rupee),” said a forex trader at a bank.

“When you combine that with the price action, it does seem to me that the risk-reward (for short Rupee positions) is now poor.”

In China, the spot Yuan started the day at 7.2870 per Dollar and at the time of writing was trading at 7.2807, 1.13% weaker than the midpoint, which was set at 7.1988 per Dollar.

Furthermore, the Euro gained 0.15% to $1.086 moving away from the two-month low overnight of $1.0833; the Australian Dollar increased 0.23% to $0.644; whilst the New Zealand Dollar edged up 0.08% to $0.595.