Early Friday morning in Europe, the U.S. dollar made a slight recovery from 15-month lows as traders anticipated the Federal Reserve's cycle of rate increases would come to an end as inflation declined.

The dollar index that gauges the greenback versus its major pairs, edged up by 0.2% higher at 99.620, post sliding below 100 level since last year’s April.

Despite these advances, the dollar is down almost 2.5% this week, its worst weekly performance in eight months, as a result of softer-than-expected inflation statistics provided by the United States.

Although a second hike this year is no longer the most likely scenario, markets are still generally anticipating a 25 basis point increase from the Fed later this month.

As executives discuss current company and consumer demand and their expectations for the rest of the year, the second quarter earnings season might potentially provide the Fed food for thought on any more rises.

EUR/USD dropped 0.2% to 1.1207, before dropping, having reached a new 16-month high of 1.1244 in Asian hours.

GBP/USD slumped 0.3% to 1.3096, having surpassed 1.30 for the first time since April 2022 on Thursday.

USD/JPY climbed 0.2% to 138.3 and is expected to have its best week versus the dollar since January.