The greenback traded mixed versus its major peers, and in tight ranges during the London session, as traders waited for US inflation data later on Thursday for clues on Federal Reserve interest-rate cuts.
The Bloomberg Dollar Spot Index is little changed on the day after rising in the last eight sessions; Treasury yields are also little changed.
US consumer price data is expected to show inflation further moderating.
EUR/USD drops 0.1% to 1.0928, its lowest level since Aug. 13; overnight volatility trades around 9.75% for a breakeven of 50 dollar pips. One-week risk reversals rise to 38 basis points, the most bearish level for the euro in three months; the tenor now captures the next European Central Bank meeting
USD/JPY rises to fresh cycle highs at 149.55 before dropping by 0.3% to 148.91 day low; the pair rose earlier on stronger demand for the greenback over the Tokyo fixing, according to an Asia-based FX trader.
It lost momentum after Deputy Governor Ryozo Himino said the Bank of Japan will continue to raise its benchmark rate, unwinding easy policy settings, if the economy performs in line with projections.
AUD/USD pares most of a 0.4% advance; iron ore and copper prices rose ahead of a keenly anticipated policy briefing by China's government on Saturday.
Source : Bloomberg
