Dollar Steadies as Traders Eye U.S. CPI and Fed Rate Cuts

The dollar held its ground on Thursday as traders eagerly anticipated the U.S. consumer price index data. This report is seen as crucial for getting insights into the Federal Reserve's potential rate-cutting path. Meanwhile, the euro was steady, with the European Central Bank's meeting in view.

Market participants are closely watching to see if the Fed will adjust its rates, with Bank of America anticipating two more cuts this year. An unexpected drop in U.S. factory-gate prices has bolstered expectations for a Fed rate cut next week. The euro saw little action despite geopolitical tensions, including Poland's interception of alleged Russian drones.

Attention firmly remains on the Federal Reserve's approach to rate cuts, with traders largely believing that some easing is inevitable. Elsewhere, in currency movements, the dollar appreciated against the yen, while other major currencies, including the Australian dollar, offshore yuan, and sterling, experienced slight declines.

(With inputs from agencies.)