US$ down as China woes seen restraining Fed

London

THE dollar fell to a 31/2-week low against a basket of currencies on Wednesday as more signs of economic weakness in China bolstered expectations the US Federal Reserve will wait longer before raising interest rates.

The Australian dollar stayed below two-month highs after subdued inflation data from China underpinned a growing view that the world's second-largest economy was losing momentum. China is a huge export market for Australia and the Australian dollar is used as a proxy for investments to China.