The US dollar fell as investors looking ahead to Thursday’s US consumer price report for clues on the direction of the Federal Reserve’s monetary policy.
The US currency recorded larger losses earlier in the session, especially after data showed that the Chinese economy slipped into recession last month.
The US dollar index, which measures the value of the US currency against six other currencies, was down 0.1% at 102.46, reversing some of Tuesday’s gains.
The euro rose 0.2 percent to $1.0976, while the pound sterling fell 0.2 percent to $1.2721.
“We remain absolutely convinced that US inflation continues to ease, driven by declining housing price inflation, which is 35% of the headline CPI,” wrote Macquarie analysts led by forex and exchange rate strategist Thierry Weizmann.
