The U.S. dollar edged higher in early European hours Friday, rebounding from 15-month lows as traders factored in an end of the Federal Reserve’s rate hike cycle as inflation eases. At 02:55 ET (06:55 GMT), the dollar index, which tracks the greenback against a basket of six other currencies, traded 0.2% higher at 99.620, after having fallen below the 100 level for the first time since April 2022.However, despite these gains, the dollar is around 2.5% lower this week, its worst weekly performance in eight months, hurt by the U.S.-reported softer-than-expected inflation data – consumer prices on Wednesday and producer prices on Thursday – supporting views that the Federal Reserve is nearing the end of its interest rate-hiking cycle.“Over recent months we had been speculating that clear signs of US disinflation - and a weaker dollar - may emerge in 3Q23 and … [these] moves could well be the start of an important market adjustment,” said analysts at ING, in a note.Markets are still widely expecting a 25 basis point hike from the Fed later this month, but another hike this year is no longer the base case. Investing.com