LONDON—The dollar hovered around multi-week lows against the euro and sterling on Wednesday, after unexpectedly soft U.S. inflation data cemented the view that the Federal Reserve will not raise interest rates later in the day.
China’s yuan sagged to a 6–1/2-month trough after the central bank cut rates, and as speculation mounts that even more stimulus is on the way to support the sputtering post-COVID economic recovery.
The dollar index—which measures the performance of the U.S. currency against six others—was flat at 103.20, after touching its lowest since May 22 overnight at 103.04.
In April, the U.S. consumer price index (CPI) logged its smallest year-on-year increase since March 2021 at 4.0 percent….