Dollar Recovers Modestly After Powell’s Dovish Remarks, Crypto Markets Watch Closely

The U.S. dollar stabilized Monday following Friday's sharp decline triggered by Federal Reserve Chair Jerome Powell's unexpectedly dovish comments at Jackson Hole. While the greenback edged higher against major currencies like the euro and yen, the MOVE paled in comparison to last week's selloff. Markets had initially priced in aggressive rate cuts after Powell's speech, but are now recalibrating as traders await confirmation from upcoming economic data.

Gold's slight pullback mirrored the dollar's tentative recovery, highlighting how sensitive markets remain to shifting Fed expectations. The interplay between traditional safe-havens and risk assets could have implications for cryptocurrency markets, particularly Bitcoin which often behaves as a risk-on asset during periods of dollar weakness.

Asian and European equities rallied on hopes for looser U.S. monetary policy, creating a favorable backdrop for crypto assets. While no specific digital assets were mentioned in the report, the broader market dynamics suggest potential increased volatility across major cryptocurrencies like BTC and ETH as traders digest Fed policy implications.