SINGAPORE, June 13 Reuters The dollar edged broadly lower on Tuesday but traded in a narrow range, as investors remained cautious ahead of key U.S. inflation data due later in the day just as the Federal Reserve kicks off its twoday monetary policy meeting.

In Asia, China39;s yuan fell to a sixmonth low after the central bank lowered a shortterm lending rate for the first time in 10 months, in a bid to restore market confidence and prop up its stalling postpandemic recovery.

The onshore yuan bottomed at 7.1680 per dollar, its lowest since last November, and last traded at 7.1618.

Its offshore counterpart was last 0.2 lower at 7.1709 per dollar, having weakened to a fresh sixmonth low of 7.1782 earlier in the session.

China39;s slowdown is partly due to policymakers39; intention to push ahead with structural reforms, said analysts at ANZ in a note.

Monetary easing is merely a tentative measure to engineer a soft landing for the traditional economy.

Market attention now turns to the U.S. Labor Department39;s CPI report due later on Tuesday, which is expected to show inflation cooled slightly in May and could give the Fed room to pause its aggressive ratehike cycle when it announces its interest rate decision on Wednesday.

Markets are currently pricing in a nearly 84 chance that the Fed will keep rates on hold at this week39;s meeting, according to the CME FedWatch tool.

Those expectations kept risk sentiment buoyant, pinning the U.S. dollar near multiweek lows…