SINGAPORE, Dec 1 Reuters The dollar dipped on Friday, while the euro edged higher after steep overnight losses as traders weighed data that showed inflation was easing, stoking expectations that interest rates had peaked and central banks would soon start cutting rates.

The dollar index , which measures the U.S. currency against six rivals, was 0.116 lower at 103.33, after clocking its weakest monthly performance in a year in November, despite a 0.6 jump overnight.

Data on Thursday showed U.S. consumer spending rose moderately in October, while the annual increase in inflation was the smallest in more than 212 years.

The eagerly awaited personal consumption expenditures PCE price index rose 3 in October from a year ago, moderating from a threemonth string of 3.4 readings though still above the Fed39;s 2 target.

While the 3 level remains too high to declare victory on inflation, it marks a new low for the series that will likely please the Fed and alleviate any pressure to implement further hikes, said Ryan Brandham, head of global capital markets, North America, at Validus Risk Management.

It remains to be seen if getting from 3 to 2 will be easy, or if inflation will remain sticky in 2024.

Federal Reserve policymakers signalled on Thursday that the U.S. central bank39;s interest rate hikes are likely over, but left the door open to further monetary policy tightening should progress on inflation stall.

Markets are pricing in a 97 chance of the Fed standing pat in…