Dollar droops as bets build for Fed pause, yuan at 6-mth low

The US dollar weakened to a three-week low against the euro and a one-month low versus sterling on Wednesday due to soft US inflation data, leading to speculations that the Federal Reserve would not raise interest rates. Reports state that China’s yuan continued to slide after the central bank cut rates on Tuesday to further support the post-COVID economic recovery. The dollar index dipped to its lowest level since 22 May overnight. Reports suggest that the next adjustment to China’s reverse repo rate could come as soon as Thursday.