(Updates prices throughout, adds tables, analyst comments in paragraphs 3, 4, 14 and 15; adds byline and NEW YORK dateline)
The dollar was little changed to slightly higher against a basket of its peers on Monday, recouping some of its earlier losses as traders held on to large positions in the greenback ahead of the Federal Reserve's Jackson Hole, Wyoming, symposium starting on Friday.
The dollar index =USD , which measures the currency against six other majors and has had five straight weeks of gains, last rose 0.068% to 103.440, still shy of Friday's two-month high of 103.68.
Karl Schamotta, chief market strategist at Corpay in Toronto, said the widening in expected growth differentials is currently the big trade in global market as yields in the UK and Europe play catch-up with the United States.
"The dollar does look like it is still the cleanest dirty shirt on the global economic landscape," Schamotta said. "Traders are holding relatively hefty positions in the dollar going into Jackson Hole just in case Chair Powell does come out with a more hawkish perspective on recent data."
The euro EUR= was up 0.1% at $1.0889, while sterling GBP= was last trading at $1.2736, down 0.03%. The Japanese yen JPY= , which is on intervention watch, weakened 0.65% versus the greenback at 146.35 per dollar.
Although the yen has fallen to levels around which authorities stepped in last year, analysts at JP Morgan sees the threshold for currency market intervention at around 150 per dollar this time around.
Also on watch for intervention is the Chinese yuan, which rose 0.2% in offshore markets CNH=D3 versus the greenback at $7.29 per dollar.
The currency fell to the weaker side of 7.3 per dollar earlier before rebounding after Reuters reported that state-owned Chinese banks were seen actively mopping up offshore yuan liquidity, a move that raised the cost of shorting the currency.
China earlier cut its one-year benchmark lending rate by 10 basis points (bps) and left its five-year rate unchanged, against economists' expectations for larger 15-bps cuts to both.
In the United States, Fed Chair Jerome Powell is set to speak on Friday, and his comments may set the direction for U.S. Treasury yields, which have driven the rise in the dollar in recent weeks.
Ten-year yields US10YT=TWEB soared to a 15-year high on Monday and were last up 8.7 basis points at 4.337%.
The theme this year for the annual gathering in Wyoming is "structural shifts in the global economy". "While China's stimulus was underwhelming, hopes remain high for more action should the economy continue to slow," said Joe Manimbo, senior market analyst at Convera in Washington.
"Key for the buck and broader markets this week will be whether the Fed chair should underscore how inflation remains too high. Having rallied for weeks now, the dollar may show some fatigue, particularly since U.S. borrowing rates are likely at or near peak levels."
In cryptocurrencies, bitcoin BTC= last fell 0.8% to $25,985 while Ethereum ETH= ETH=BTSP last rose 0.3% to $1,661.60
======================================================== Currency bid prices at 11:46AM (1546 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index =USD103.4400 103.3900 +0.07% -0.048% +103.5000 +103.1300 Euro/Dollar EUR=EBS$1.0884 $1.0873 +0.11% +1.58% +$1.0914 +$1.0871 Dollar/Yen JPY=EBS146.3500 145.4100 +0.66% +11.64% +146.3950 +145.1450 Euro/Yen EURJPY=159.29 158.03 +0.80% +13.54% +159.3800 +157.8000 Dollar/Swiss CHF=EBS0.8802 0.8828 -0.27% -4.79% +0.8827 +0.8788 Sterling/Dollar GBP=D3$1.2727 $1.2736 -0.06% +5.25% +$1.2765 +$1.2711 Dollar/Canadian CAD=D31.3564 1.3551 +0.10% +0.11% +1.3567 +1.3497 Aussie/Dollar AUD=D3$0.6389 $0.6405 -0.23% -6.26% +$0.6421 +$0.6389 Euro/Swiss EURCHF=0.9580 0.9587 -0.07% -3.18% +0.9601 +0.9573 Euro/Sterling EURGBP=0.8551 0.8539 +0.14% -3.31% +0.8562 +0.8534 NZ NZD=D3Dollar/Dollar $0.5897 $0.5924 -0.42% -7.10% +$0.5936 +$0.5897 Dollar/Norway NOK=D310.6280 10.6540 -0.20% +8.35% +10.6600 +10.5530 Euro/Norway EURNOK=11.5727 11.5632 +0.08% +10.28% +11.5920 +11.5110 Dollar/Sweden SEK=10.9738 10.9756 +0.05% +5.44% +10.9981 +10.9023 Euro/Sweden EURSEK=11.9452 11.9395 +0.05% +7.14% +11.9644 +11.8940 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates https://tmsnrt.rs/2RBWI5EUSD move v2 210823 https://tmsnrt.rs/3OBcigs
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