USD rose against most other major currencies in the European session on Thursday as investors assessed the latest round of escalation U.S.-China tensions while waiting for the speech from Federal Reserve Chairman Jerome Powell. The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, rose 0.11% to 93.11.

Powell is to address the Jackson Hole economic symposium, virtually this year, at 13:10 GMT. Investors will look for clues on further stimulus from the Fed and where the U.S. economy is headed. Specifically, they will be looking for Powell’s remarks on inflation and its impact on the U.S. currency. Analysts expect that the Fed's Chair may signal an increased tolerance for higher inflation, with some predicting he will call for a move to "average inflation" targeting rather than the 2-percent target.

The U.S. State Department imposed visa restrictions on a group of Chinese individuals, while the Commerce Department added 24 Chinese state-owned companies to its trade blacklist, citing their involvement in the construction of artificial islands in the disputed South China Sea. These sanctions are likely to ratchet up tensions between Washington and Beijing.