Dollar slides, yuan gains on China PMI; hot inflation lifts euro

Yen, euro and U.S. dollar banknotes of various denominations.

Kiyoshi Ota | Bloomberg | Getty Images

The dollar slumped and China’s yuan gained on Wednesday after China’s manufacturing activity expanded at its fastest pace since April 2012, while the euro rose after regional German inflation data signaled price pressures remain high.

The Australian and New Zealand dollars were also among the beneficiaries of the robust Chinese data, which smashed expectations with the official manufacturing purchasing managers’ index (PMI) shooting up to 52.6 last month from 50.1 in January.

China’s non-manufacturing activity also grew at a faster pace in February, while the Caixin/S&P Global manufacturing PMI reading for last month likewise surpassed market expectations.

The onshore yuan finished the domestic session at 6.8854 per dollar, the strongest close since Feb. 21, while the offshore yuan jumped 1.3% to 6.8683 per…

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