The dollar rose on Wednesday in thin trading, helped by data the previous day showing a surge in U.S. new home sales, although gains were capped by uncertainty ahead of a meeting of central bankers on Friday.
Policymakers from across the globe will gather at the U.S. mountain resort of Jackson Hole at the end of the week, where the focus lies squarely on a speech by Federal Reserve Chair Janet Yellen. Investors expect Yellen to provide guidance as to next the interest rate hike from the Fed. The last rate increase was in December, the first in almost ten years.
Futures markets assign a 24 percent chance the hike will come in September, and a roughly 50 percent odds of an increase by the end of the year, according to CME's FedWatch tool.