Dollar Drifts as U.S. Inflation Looms, Yuan Wobbles on Weak Chinese Stimulus

The dollar remained steady as markets anticipated U.S. inflation data and Federal Reserve insights, while the yuan struggled following China's lackluster stimulus. Chinese economic data showed slowing consumer price growth and deeper deflation. The euro faced pressure amid political uncertainties in Germany and potential U.S. trade policies.

The dollar began the week with caution as markets awaited critical U.S. inflation data and multiple Federal Reserve discussions. Meanwhile, the Chinese yuan remained under pressure due to Beijing's latest ineffective stimulus efforts.

Over the weekend, Chinese data revealed slowing consumer price growth and further producer price deflation, highlighting economic troubles. Investors await key retail sales and industrial output figures to assess the impact of China's stimulus measures on actual demand.

In Europe, the euro struggled due to political uncertainty in Germany, with Chancellor Olaf Scholz contemplating a vote of confidence. Concurrently, U.S. President-elect Donald Trump's trade proposals posed potential risks to European exports.

(With inputs from agencies.)