The U.S. dollar climbed higher on Wednesday, gaining some ground after exhibiting weakness over the past several sessions, as data showed a smaller than expected increase in U.S. consumer price inflation.

With inflation close to the 2 percent target, the Bank of Canada on Wednesday announced its widely expected decision to lower interest rates by another 25 basis points, making its seventh straight rate cut. The Bank of Canada said it decided to reduce its target for the overnight rate to 2.75 percent, with the Bank Rate at 3 percent and the deposit rate at 2.70 percent.

A report released by the Labor Department on Wednesday showed consumer prices in the U.S. increased by slightly less than expected in the month of February. The Labor Department said its consumer price index crept up by 0.2 percent in February after climbing by 0.5 percent in January. Economists had expected consumer prices to rise by 0.3 percent.

India's consumer price inflation slowed to a seven-month low in February as food price growth hit the lowest in nearly two years, raising expectations of interest rate cuts over coming months. Consumer price inflation eased to 3.61 percent in February from 4.26 percent in January, official data revealed on Wednesday. This was the lowest since July 2024.

European Central Bank President Christine Lagarde said the level of uncertainty is exceptionally high and maintaining stability has become difficult. "The level of uncertainty we are facing is exceptionally high," she said at a conference organized by the Institute for Monetary and Financial Stability at Goethe University Frankfurt on Wednesday.

The Japanese yen weakened against other major currencies in the European session on Wednesday, as European shares traded higher after Ukraine signaled its readiness to accept a U.S. proposal for an "immediate, interim 30-day ceasefire" with Russia, and the European Union announced retaliatory tariffs on U.S. imports of steel and aluminum.

The U.S. dollar dropped to near 5-month lows on Tuesday on concerns about the outlook for growth and fears of a potential recession in U.S. due to the ongoing trade war.

The commodity currencies such as Australia, the New Zealand and the Canadian dollars weakened against their major currencies in the Asian session on Tuesday, amid increasing worries the U.S. is headed for a recession and concerns over the health of the world economy following the likely impact of President Donald Trump's tariffs and trade policies.

The U.S. dollar turned in a mixed performance against its major counterparts on Monday as traders weighed the likely impact of President Donald Trump's tariffs and trade policies, and the most recent economic data.

The U.S. dollar tumbled against major currencies during the week ended March 7 amidst an extended sell-off on Wall Street triggered by the escalation in the trade war and a weak labor market update.

The U.S. dollar weakened against other major currencies in the Asian session on Monday amid prospects of the U.S. Fed cutting interest rates earlier after a report showed employment in the U.S. increased by slightly less than expected in the month of February. However, concerns remain that the U.S. trade war may hurt global growth and worsen inflation.

The U.S. dollar is seeing moderate weakness during trading on Friday, extending the downward move seen over the past week amid concerns about the impact of President Donald Trump's new tariffs.

Citing uncertainty about the effects of President Donald Trump's policy changes, Federal Reserve Chair Jerome Powell reiterated Friday that the central bank does not "need to be in a hurry" to adjusted interest rates. Powell argued the Fed is "well positioned to wait for greater clarity" about the impact of Trump's policy changes.

Employment in the U.S. increased by slightly less than expected in the month of February, according to a closely watched report released by the Labor Department on Friday. The report said non-farm payroll employment climbed by 151,000 jobs in February after rising by a downwardly revised 125,000 jobs in January. Economists had expected employment to grow by 160,000 jobs.

The euro area economy grew in the fourth quarter at a faster than initially estimated pace, driven by consumption and investment. Eurozone economic growth for the fourth quarter was revised up to 0.2 percent from 0.1 percent, Eurostat reported. Nonetheless, this was weaker than the 0.4 percent expansion seen in the third quarter.

UK house prices fell unexpectedly in February as demand started to soften with the stamp duty holiday to end on March 31, mortgage lender Halifax said Friday. House prices registered a monthly fall of 0.1 percent in February, reversing January's 0.6 percent increase. Prices were forecast to grow 0.5 percent.

Germany's industrial orders declined more than expected in January reflecting sharp decreases in orders for machinery and transport equipments. Industrial orders fell 7.0 percent month-on-month in January, in contrast to the revised 5.9 percent rise in the previous month, data from Destatis showed on Friday. Economists had forecast a moderate 2.8 percent fall for January.

The Antipodean currencies such as the Australia and the New Zealand dollars weakened against other major currencies in the Asian session on Friday, following the release of China's trade data that showed a sharp slowdown in exports growth and an unexpected fall in imports during the January to February period.

Factory orders from Germany and house prices from the UK are the top economic news due on Friday. At 2.00 am ET, Destatis is scheduled to issue German factory orders data for January. Orders are forecast to fall 2.4 percent on a monthly basis, in contrast to the 6.9 percent increase in December.

China's exports growth eased more than expected at the start of the year and imports logged an unexpected sharp decline amid mounting trade tensions, official data revealed on Friday. Exports grew at a slower pace of 2.3 percent annually in the January to February period, following a 10.7 percent rise in December, data from the customs office showed. Exports were expected to climb 5.0 percent.

The U.S. dollar stayed weak against most of its major counterparts on Thursday, although the decline was not any significantly pronounced.

Traders continued to track the developments on the tariff front, and digested the latest batch of economic data, and the European Central Bank's decision to lower interest rates once again.

The European Central Bank cut its key interest rates for the fifth policy session in a row and also lowered the growth forecast for the euro area mainly due to prospects of weak exports and investment in the backdrop of high trade uncertainty amid the tariffs war, and signaled a pause in the easing cycle as policy is now deemed less restrictive.

A report released by the Commerce Department on Thursday showed wholesale inventories in the U.S. increased by slightly more than expected in the month of January. The Commerce Department said wholesale inventories climbed by 0.8 percent in January after falling by a revised 0.4 percent in February.

Labor productivity in the U.S. grew by more than previously estimated in the fourth quarter of 2024, according to a report released by the Labor Department on Thursday. The report said labor productivity shot up by 1.5 percent in the fourth quarter compared to the previously reported 1.2 percent jump. Economists had expected the increase in labor productivity to be unrevised.

With the more closely watched monthly jobs report looming, the Labor Department released a report on Thursday showing first-time claims for U.S. unemployment benefits fell by more than expected in the week ended March 1st. The report said initial jobless claims dipped to 221,000, a decrease of 21,000 from the previous week's unrevised level of 242,000