The dollar got a boost against its major peers on Thursday as a Federal Reserve official said they are in no rush to cut interest rates amid stubborn inflation, as traders await key economic data.
Meanwhile, the yen held firm against the dollar after Japan's top monetary policy officials signaled on Wednesday that they were ready to intervene. The Japanese currency is still not far from the 152 level against the dollar.
Federal Reserve Governor Christopher Waller said the latest disappointing inflation data underscores the need for the U.S. central bank to hold off on cutting its short-term interest rate target.
The dollar index, which measures the greenback against a basket of major currencies, rose in the wake of Waller's comments and was little changed at 104.41. It has risen about 3 percent so far this year.
Kyle Rodda, a financial markets analyst at Capital.com, said Waller's speech was evidence that the Fed is more cautious about stubborn inflation and perhaps even accelerating price growth again.
