The dollar fell on Wednesday while the Chinese yuan fell to its lowest level in three weeks. The pound sterling is falling against the euro and the Indian rupee is expected to continue its rise

The dollar took a step back from its rise caused by tariffs, leaving it below recent spikes as traders waited for U.S. inflation data and news on the wider trade front.

The euro rose by 0.5% on Tuesday and remained stable while the British pound rose by around 0.7% and hovered at $1.2441 at the start of the Asian session on Wednesday.

The Chinese yuan fell to its lowest level in three weeks against the dollar on Wednesday as investors cautiously await further developments in increasingly tense global trade relationships. The yuan fell by more than 12% against the dollar between March 2018 and May 2020. At 03:13 GMT, the onshore yuan was down 0.03% to 7.3079 per dollar after touching a low of 7.3123, the weakest level

The pound fell slightly against the euro and remained unchanged against the dollar, with investors waiting for economic data from both sides of the Atlantic and a speech by Bank of England governor Andrew Bailey later in the day. Catherine Mann, the BoE's monetary policy officer, said that rising prices in the UK over the coming year would be in line with the bank's objective, the FT reported. The pound fell by 0.15% to 83.40 pence per euro. It hit 82.88 pence a week ago, the lowest level since January

The Indian rupee is about to open higher on Wednesday, adding to its recovery over the past two days, fuelled largely by strong central bank intervention.