Currency traders are increasing hedges for further gains on the dollar ahead of a key speech from Federal Reserve Chairman Kevin Warsh at the Jackson Hole symposium. The greenback has recouped half of its losses since US Treasury Secretary Scott Bessent's surprise move last week to support the bond market. Markets are closely watching for signals on monetary policy direction.

Kevin Warsh is scheduled to deliver remarks at the annual economic symposium in Jackson Hole on Friday. His comments are expected to provide clarity on the Fed's stance regarding inflation and interest rates. The dollar's recent volatility reflects shifting expectations following Bessent's unexpected intervention in the bond market.