The dollar edged higher ahead of US November inflation data due later today. However, Mario Schimmels of the research department of the German Central Bank of Cooperation said the dollar could "depreciate somewhat" in the short term if annual core inflation falls from 3.3% in October to 3.2% in November, as the bank expects. "While the price-depressing effect of energy prices may have lost some of its effect, price pressures in the service sector are expected to ease." Wage pressures have eased and apartment rents have risen only slightly in new contracts, he said. Most analysts surveyed by the Wall Street Journal expect core CPI to remain unchanged at 3.3%.