Investing.com - The U.S. dollar was slightly higher on Thursday as traders increased expectations that the Federal Reserve will cut interest rates in the coming months.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.1% to 97.053 by 10:24 AM ET (14:24 GMT).
Consumer inflation data on Wednesday helped support the case for a cut, as it slipped from the Fed's 2% target.
Traders have been speculating on the possibility of the central bank changing its course on monetary policy due to slowing inflation and rising trade tensions.
The Fed is expected to keep rates unchanged at its meeting on June 19, with an 85% chance of a cut priced in for its July meeting, according to Investing.com’s Fed Rate Monitor Tool.
The dollar was lower against the safe-haven Japanese yen, with USD/JPY falling 0.01% to 108.47 as trade tensions lingered.
President Donald Trump declined to set a deadline on increasing import tariffs on Chinese goods, insisting that the two countries would eventually make a deal but taking responsibility for the delay in the meantime.
“I have no deadline. My deadline is what’s up here,” he said, pointing to his head at a press conference on Wednesday.
Elsewhere, the euro inched down, with EUR/USD falling 0.1% to 1.1271. Sterling was higher, with GBP/USD gaining 0.1% to 1.2690, while USD/CAD slipped 0.1% to 1.3329.