Dollar edges higher as inflation data eyed

The dollar index rose slightly above 99 on Thursday, recouping losses from the previous session as investors looked ahead to the September inflation report due Friday that could offer insights on the economy amid a data blackout.

The three-week old US government shutdown has delayed the release of crucial data that could guide the economic and interest rate outlook.

President Donald Trump rejected a request from top Democratic lawmakers to meet until the shutdown ends. Meanwhile, the Federal Reserve is widely expected to lower rates by 25 basis points next week and again in December.

On the trade front, Trump stated that his upcoming meeting with Chinese President Xi Jinping is “scheduled,” easing some fears about US-China relations.

The greenback also drew support from weakness in the pound and yen following soft UK inflation figures and growing expectations of fiscal stimulus in Japan.