The US dollar stabilized near a one-month low on Thursday, following the release of weak US inflation data that solidified expectations that the Federal Reserve will delay interest rate hikes.

Among major currencies, the euro stabilized near a one-month high at $1.1465, while the British pound held at a two-month high of $1.3539, supported by investor optimism about the economic outlook.

In contrast, the Australian dollar and New Zealand dollar retreated from multi-week highs, settling at $0.6997 and $0.5849 respectively, while the Japanese yen saw little change, holding at 162.10 yen against the dollar.

The dollar index, which measures the greenback's performance against a basket of six major currencies, edged up slightly to 100.48, moving away from its lowest since June 18. The index had fallen 0.8% over the previous two sessions and is on track to post a weekly loss.