Investing.com - The dollar fell to fresh one-month lows against the other major currencies on Wednesday, as demand for the greenback remained broadly under pressure since expectations for a U.S. rate hike were pushed back to next year and investors awaited upcoming U.S. data.
The dollar was lower against the euro, with EUR/USD up 0.22% at 1.1404.
The dollar remained under pressure after data on Wednesday showed that the annual rate of inflation in China slowed to 1.6% in September, from 2.0% in August, compared to forecasts of 1.8%.
Producer prices were also lower, adding to concerns over deflationary pressures in the world’s second-largest economy. The report came one day after data showing that Chinese imports tumbled 20% last month.
The soft data reinforced expectations that the Federal Reserve will wait for more time before tightening monetary policy amid fears that slowing global growth could affect the U.S. economy.
In addition, Fed board Governor Daniel Tarullo said Tuesday that he doesn’t expect a rate hike this year, while St. Louis Fed President James Bullard said a rate hike this month is unlikely.
The dollar was also lower against the yen and the Swiss franc, with USD/JPY slipping 0.19% to 119.50 and with USD/CHF down 0.15% to 0.9564.
Elsewhere, the dollar dropped against the pound, with GBP/USD climbing 0.75% to 1.5363 after data showed that the U.K. unemployment rate fell to a new seven-year low.
The U.K. Office for National Statistics said the unemployment rate ticked down to 5.4% in the three months to August from 5.5% in the preceding three-month period. It was the lowest unemployment rate since the second quarter of 2008.
The number of people claiming unemployment benefits rose by 4,600, bringing the total to 796,000. Economists had forecast a decline of 2,100.
Average earnings, excluding bonuses, rose at an annual rate of 2.8% in the three months to August, slowing slightly from 2.9% in July. Economists had expected a rise to 3%.
Pay, including bonuses rose by 3.0%, up from 2.9% in July, but slightly below forecasts for an increase of 3.1%.
The Australian dollar was steady, with AUD/USD at 0.7241, while NZD/USD rallied 1.29% to 0.6729.
USD/CAD fell 0.14% to trade at 1.3018.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.23% at 94.58, the lowest level since September 18.