SINGAPORE, Sept 9 Reuters The dollar recovered some lost ground on Monday while the yen pared its safehaven gains, as investors who were undecided on the scale of a Federal Reserve rate cut expected later this month looked to this week39;s U.S. inflation data for more clues.

In China, data showed consumer prices accelerated in August to the fastest pace in half a year but producer price deflation worsened, reigniting calls for further stimulus measures to prop up a stillstruggling economy.

The onshore yuan was last 0.3 weaker at 7.1117 per dollar, while its offshore counterpart eased 0.27 to 7.1142.

The report could continue to perpetuate deflation fears, said Saktiandi Supaat, regional head of FX research and strategy at Maybank.

There have been talks of reserve requirement ratio cuts, but given how the earlier easing… has had little effect, I think further easing via RRR cuts or interest rate cuts may actually simply result in a weaker yuan.

Currencies elsewhere struggled for direction after Friday39;s highly anticipated U.S. jobs data failed to offer clarity to traders on the question of whether the Fed would deliver a regular 25basispoint rate cut or an outsized 50 bp one at its policy meeting next week.

While employment increased less than expected in August, the jobless rate ticked lower and wage growth remained solid, indicating that the U.S. labour market was cooling, but not at a pace that warranted panic over the economy39;s growth outlook.

The yen…