LONDON—The dollar eased on Wednesday after data showed the Chinese economy slipped into deflation last month, which upped the chances for Beijing to roll out extra stimulus measures and nudged investors into risk assets.
Dollar selling by state-owned Chinese banks helped the yuan rally from a one-month low, dealers said. The Chinese central bank’s stronger-than-expected exchange-rate fixing at 7.1588 per dollar before the open signalled its discomfort with the yuan’s recent declines.
