The dollar dipped against most currencies on Thursday ahead of U.S. inflation data later in the day that will shape the Fed's policy direction, though the greenback did touch a one-month high against the Japanese yen, partly on higher energy costs.

The euro rose 0.47% to $1.1025, the pound gained 0.4% to $1.277, and the yen was steady at 143.76 per dollar, having earlier softened to 144.14 per dollar, its weakest in a month.

However, the main scheduled event of the day--and indeed the week the release of U.S. CPI for July is yet to come.

The data will go some way towards underscoring or disrupting markets' current expectation that the Federal Reserve is finished with its hiking cycle.

Expectations are for headline inflation to pick up slightly to an annual 3.3%, while the core rate, which excludes the volatile food and energy segments, is forecast to rise 0.2% in July, for an annual gain of 4.8%.

Source : Reuters