Dollar Edges Up Amid Market Anticipations and Global Tensions

The dollar rose slightly against major currencies as traders awaited U.S. inflation data and processed ongoing trade tensions between the U.S. and China. The yen weakened amid expectations of a Japanese economic stimulus package. Sterling faced pressure after UK inflation data stalled. Markets anticipate potential rate changes by U.S., UK, and Japan central banks.

The dollar edged higher against major currencies on Thursday as traders anticipated the release of postponed U.S. consumer inflation data. Geopolitical tensions, including trade disputes between Washington and Beijing, kept markets on edge.

In Japan, the yen dipped to a one-week low against the dollar, with markets keenly waiting details of a proposed economic stimulus package by Prime Minister Sanae Takaichi. Meanwhile, sterling struggled following steady inflation data from the UK, which diverged from economists' predictions.

The market positioned a significant possibility of a rate cut by the Bank of England by December, although expectations fluctuated. While potential U.S. export restrictions to China stirred geopolitical waters, economic indicators focused largely on upcoming interest rate decisions by central banks in the U.S., the UK, and Japan.

(With inputs from agencies.)