The dollar sputtered at broadly lower levels on Wednesday after slumping overnight as a surprisingly softer U.S. inflation reading bolstered bets that the Federal Reserve has reached the end of its monetary tightening cycle. The offshore Chinese yuan, meanwhile, received some support after domestic industrial output and retail sales growth beat expectations.
The activity data generally appeared to be “further evidence of very slow progress being made” in China’s economy, said Rob Carnell, Asia-Pacific Head of Research and Chief Economist at ING.
