SHANGHAI: China’s yuan slid to nearly eight-month lows against the US dollar on Wednesday, after data showed the country’s consumer inflation missed expectations, while a strong greenback also pressured the Chinese currency.
The dollar was on the front foot on Wednesday having rebounded from a three-week low after Federal Reserve Chair Jerome Powell struck a cautious tone on how soon interest rate cuts would come.
By 0345 GMT, the yuan was 0.04% lower at 7.2756 to the dollar after trading in a range of 7.2734 to 7.2761.
China’s consumer prices grew for a fifth month in June but missed expectations, while producer price deflation persisted, with domestic demand stuck on a slow recovery path despite a flurry of government support measures to help the economy.
Prior to the market opening, the People’s Bank of China set the midpoint rate, around which the yuan is allowed to trade in a 2% band, at 7.1342 per dollar, its weakest since Nov. 21, 2023 and 1,369 pips firmer than a Reuters’ estimate.
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