Tokyo: The dollar stabilised in early Asian trading hours on Thursday after an unexpected drop in US factory-gate prices bolstered expectations the Federal Reserve will cut rates next week. The dollar index nudged upwards to 97.822, rising for a third consecutive day after the Producer Price Index for final demand fell 0.1% during August.

According to Qatar News Agency, against the yen, the dollar was trading flat at 147.41 yen, after data showing Japanese wholesale prices rose 2.7% in the year to August, accelerating from the previous month. The euro edged upwards to $1.1698 ahead of the European Central Bank's policy meeting later on Thursday.

The Australian dollar fetched $0.66165, up 0.04% in early trade after hitting the highest levels since November on Wednesday. The offshore yuan traded at 7.1184 yuan per dollar, strengthening 0.03% in early Asian trade. The kiwi slipped 0.03% to $0.59375. Sterling traded at $1.3527, unchanged so far on the day.