The U.S. dollar inched higher against major global currencies on Thursday as traders awaited the delayed release of key U.S. consumer inflation data, scheduled for Friday, while also monitoring growing trade tensions between Washington and Beijing.
The dollar index, which tracks the greenback’s performance against six major peers including the yen, sterling, and euro, rose 0.5% to 98.979. The movement reflects cautious optimism among investors ahead of fresh data that could shape expectations for the Federal Reserve’s next policy moves.
Against the yen, the dollar gained 0.17% to trade at 152.21, having earlier touched 152.26 — its strongest level since October 14. The Japanese currency weakened as markets anticipated details of a large-scale economic stimulus package expected from newly appointed Prime Minister Sanae Takaichi. Analysts view Takaichi as a fiscal and monetary dove, suggesting that Japan may continue its accommodative policy stance, which typically weighs on the yen.
In Europe, the British pound remained under pressure following weaker-than-expected inflation figures. Data released Wednesday showed that U.K. consumer prices held steady at 3.8% in September, defying economists’ forecasts of a rise. The stagnant inflation reading has prompted speculation that the Bank of England could delay further rate hikes. Sterling slipped 0.09% to $1.3345 in Thursday’s trading.
Meanwhile, the euro also edged lower, easing 0.06% to $1.1604, as investors adopted a cautious stance ahead of the U.S. inflation report. The data is expected to provide insight into whether recent signs of cooling price pressures in the U.S. will continue, potentially influencing the Fed’s approach to interest rate adjustments in the coming months.
Market sentiment has also been dampened by renewed trade tensions between the U.S. and China. Washington’s latest warnings of potential trade measures against Beijing have stirred concerns about a possible escalation in economic friction between the world’s two largest economies.
Analysts noted that Thursday’s movements were modest but underscored the market’s sensitivity to both economic data and geopolitical developments. “Investors are treading carefully ahead of Friday’s inflation numbers,” one currency strategist said, adding that “the dollar’s strength reflects a wait-and-see approach amid uncertainty over U.S. monetary policy.”
As global markets brace for the release of U.S. inflation data, traders are expected to closely monitor how the figures might influence central bank strategies and global currency trends in the days ahead.
