Dollar weakens versus euro; investors cautious as inflation data ahead - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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The dollar edged lower on Thursday against the euro, with investors cautious as they weighed the outlook for US Federal Reserve policy against the chances that higher interest rates could lead to a recession.

The Fed, the European Central Bank and the Bank of England are all set to announce interest rate decisions next week as policy-makers continue to tap the brakes on economic growth through higher rates to thwart stubbornly high inflation.

The euro was last up 0.5% at $1.0555 against the dollar, while sterling was up 0.2% against the dollar.The US dollar index, which measures the greenback against a basket of currencies, was last down 0.3%. The US dollar index remains up about 9.5% for the year so far, but is down more than 6% for the fourth quarter, putting it on track for its biggest percentage quarterly decline since the third quarter of 2010, when it dropped 8.5%, according to Refinitiv data.

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