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Traders are looking for clues on the U.S. central bank's
tightening plans to combat rampant inflation when Powell speaks
at 1400 GMT.
The dollar index - which tracks the greenback against six major
currencies - has steadily gained over the past two weeks and is
just shy of the two-decade peak of 109.29 it hit in mid-July.
After making small gains earlier in the session, it slipped a
quarter of a percent on the day to 108.210.
"(Powell) is likely to focus on the short-term challenges and
endeavour to leave no doubt about the Fed's determination in the
fight against inflation," Esther Reichelt, a forex analyst at
Commerzbank, said in a note.
"If he succeeds convincingly, he could support the dollar, at
least in the short term."
Fed officials have been noncommittal about the potential size of
interest rate increases in their addresses at the symposium so
far, but have maintained that they will drive rates up to keep
inflation at bay.
The Fed is due to get two more key inflation reports and more
jobs data before its scheduled Sept. 20-21 meeting.
In Europe, soaring energy prices stemming from Russia's invasion
of Ukraine have dimmed economic prospects and weighed on the
euro and sterling, pushing them both more than 10% lower against
the dollar this year.
Sterling was flat on the day at $1.18410, after earlier losing
as much as 0.5%, as British regulators confirmed consumer energy
bills would rise 80% and warned of a "crisis" needing urgent
government action.
The euro gained 0.4% to $1.00120, nudging back above parity
against the dollar after spending much of this week below the
psychologically important level.
The dollar gained 0.3% on the Japanese yen, last quoted at
136.905 yen per dollar.
(Reporting by Iain Withers, Additional reporting by Alun John in
Hong Kong, Editing by Rashmi Aich, Kirsten Donovan)
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