Dollar Holds Steady Amid Rate Cut Speculation and Global Market Dynamics

On Thursday, the dollar showed minor gains as market participants awaited significant U.S. consumer price data, expected to offer clues on the Federal Reserve's rate cut trajectory. However, the euro remained stable prior to a European Central Bank meeting, with no immediate changes anticipated in monetary policy.

The dollar index rose slightly by 0.2% to 97.97. This uptick follows an unanticipated decrease in U.S. factory-gate prices, which furthered speculation on potential Federal Reserve rate cuts. Additionally, a revision in U.S. employment growth figures underscored the broader economic uncertainty.

In contrast, geopolitical developments, such as Poland's response to suspected Russian drones, provided an intriguing backdrop as the European Central Bank is expected to maintain its interest rates. Analysts indicate that ECB President Christine Lagarde might adopt a more dovish tone despite not foreseeing rate cuts until June next year.

(With inputs from agencies.)