On Thursday, the US dollar slightly increased but stayed close to a three-month low in front of an important US inflation report later in the day.

Data revealed that the U.S. economy expanded more quickly in the third quarter than first thought, which helped to strengthen the dollar.

On mounting anticipation that the Fed will lower interest rates in the first half of 2024, it is still down 3.2% in November, the weakest month of the year.

These hopes were raised earlier this week when Federal Reserve Governor Christopher Waller—widely regarded as the central bank's hawkish voice—suggested that if the recent decrease in inflation continues, there may be a rate cut in the coming months.

The dollar index that gauges the greenback versus its major pairs added 0.4% to 103.120, little above the level it reached on Wednesday at 102.46 which was its lowest since August 10.

EUR/USD slumped 0.4% to 1.0924, with the euro declining before the release of the eurozone inflation figures.

It is anticipated that the annual eurozone CPI release for November would drop from 2.9% to 2.7%. But according to data that was made public on Wednesday, German inflation in November decreased to 2.3%, a substantial amount less than the 2.6% predicted.

GBP/USD dropped by 0.2% to 1.2671, slipping back from the three-month high of 1.2733 that was observed earlier this week.

USD/JPY edged lower at 147.18, data indicating that October retail sales climbed less than anticipated and that industrial production remained sluggish provided little support for the yen.