Who Won the U.S. Presidential Debate?

The dollar traded near a four-week high versus the euro on Thursday after signs of some stickiness in U.S. inflation reinforced expectations that the Federal Reserve would avoid a super-sized interest rate cut next week.

The dollar traded near a four-week high versus the euro on Thursday after signs of some stickiness in U.S. inflation reinforced expectations that the Federal Reserve would avoid a super-sized interest rate cut next week.

Meanwhile, a quarter-point rate reduction from the European Central Bank is widely expected later on Thursday, with investors anxious for hints on how soon the monetary authority will cut again.

The dollar gained against the yen , following a turbulent session on Wednesday that saw the U.S. currency plunge as much as 1.24% to the lowest this year before recovering all its losses after the consumer price data.

Early on Wednesday, Bank of Japan board member Junko Nakagawa reinforced the central bank's tightening bias by saying low real rates leave room for further rate hikes. Another BOJ board member, Naoki Tamura, takes to the podium on Thursday.

The U.S. consumer price index rose 0.2% last month, matching the advance in July. But excluding the volatile food and energy components, the gauge climbed 0.3%, accelerating from the previous month's 0.2% increase.

• Read More