The U.S. dollar was higher on Thursday after a hotter than expected inflation readout while the euro traded a touch lower following the European Central Bank's decision to cut interest rates for the fourth time this year.

The European Central Bank cut interest rates again Thursday, citing a worsening growth outlook and slowing inflation, with political turmoil in the eurozone adding to the troubled picture.

The European Central Bank (ECB) is to announce its decision on interest rates on Thursday, with a cut widely expected as the wave of inflation in the eurozone subsides. Many economists expect the bank to cut the key deposit rate by 0.