Investing.com - The dollar moved higher against the other major currencies on Thursday, as investors turned their focus to the European Central Bank’s upcoming policy decision, due later in the day.
EUR/USD slipped 0.17% to 1.0981.
Most analysts expect the ECB to announce fresh measures to combat deflation in the euro zone, after consumer price inflation turned negative again last month, falling 0.2%.
The ECB targets inflation of close to, but just under 2%.
The bank was expected to cut interest rates further into negative territory and to step up its asset purchasing program.
The ECB has already cut its deposit rate to minus 0.3% and is pumping €60 billion a month into the economy via asset purchases.
But investors remained wary after the bank disappointed market expectations for more quantitative easing at its December meeting, sending the euro surging higher.
USD/JPY added 0.09% to 113.44.
The dollar was steady against the pound and the Swiss franc, with GBP/USD at 1.4217 and with USD/CHF at 0.9965.
Earlier Thursday, British Prime Minister David Cameron warned that a U.K. exit from the European Union would put pressure on sterling.
Meanwhile, the Australian dollar was lower, with AUD/USD down 0.11% at 0.7467, while NZD/USD rose 0.27% to 0.6771.
The kiwi recovered from earlier losses posted after the Reserve Bank of New Zealand unexpectedly lowered its benchmark interest rate to 2.25% from 2.50% and signaled the possibility for further rate cuts to come.
USD/CAD edged up 0.22% to 1.3276.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.11% at 97.30.