LONDON, Oct 15 Reuters The U.S. dollar was perched near it highest in more than two months against major currencies on Tuesday, spurred by wagers the Federal Reserve will proceed with modest rate cuts in the near term.

A string of U.S. data has shown the economy to be resilient, while inflation in September rose slightly more than expected, leading traders to trim bets on further large rate cuts from the Fed.

The U.S. central bank kicked off its easing cycle with an aggressive 50 basis point move at its last policy meeting in September but market expectations have shifted to a slower pace of cuts, boosting the dollar.

Traders are now ascribing an 89 chance of a 25 bps cut in November, with 45 bps of easing overall priced in for the year.

The dollar index , which measures the U.S. currency against six rivals, was at 103.19, just shy of 103.36, the highest level since Aug. 8 it touched on Monday, having risen after influential Fed Governor Chris Waller called for more caution on interest rate cuts ahead.

Waller39;s comments have contributed to the stronger dollar this week, Pesole added.

The euro remained on the back foot, hitting its lowest level since Aug. 8 at 1.0885 ahead of the European Central Bank policy meeting on Thursday, where the central bank looks set to deliver a backtoback interest rate cut, a move that seemed unlikely at its last meeting in September.

The pound bought 1.3075 after British labour market data showed pay grew at its slowest in more…