Tokyo, May 11 (BNA): The dollar found its feet on Thursday while the Chinese yuan fell to a two-month low after more evidence of weakness in China’s post-COVID recovery clouded the global economic outlook.
The greenback started the day in full swing, falling against the yen under the weight of lower US Treasury yields as slowing inflation in the US boosted confidence that the Federal Reserve has raised interest rates.
But it pared those declines and erased losses against the Australian dollar and euro after Chinese data showed consumer inflation was near flat last month, after an unexpected drop in imports earlier in the week already raised a red flag.
The local yuan fell to as low as 6.9413 against the dollar, a level last seen on March 10.
The British pound fell slightly to $1.2616, retreating from Wednesday’s one-year high of $1.2679. The Bank of England will issue its policy decision later on Thursday, and is preparing for its 12th consecutive rate hike.
MI