The US dollar has been on an upward trend since early July 2025, recovering from periodic setbacks caused by payroll revisions, inflation data, and Federal Reserve Chairman Jerome Powell's Jackson Hole speech. On August 25, the dollar reached its highest levels of the day amid a global market adjustment as investors awaited key inflation data to assess the likelihood of Federal Reserve interest rate cuts. The dollar advanced by the largest margin since July 30, with all Group of 10 currencies weakening against it. Despite recent volatility, the US Dollar Index has declined less than 3% year-over-year and showed only modest reactions in the last two days, indicating that markets are no longer broadly negative on the dollar. The currency's performance reflects cautious investor sentiment ahead of upcoming economic indicators that will influence Federal Reserve policy decisions.