The dollar bounced off a 14-month low against the euro on Wednesday in choppy trading, but investors held onto bets that the Federal Reserve will make another large interest rate cut at its November meeting on weakening labor optimism.

China’s yuan briefly rose to its strongest level in over a year after Beijing unveiled a slate of stimulus measures to shore up the slowing economy.

The yuan rallied past the 7 per dollar milestone for the first time in 16 months as investors digested a raft of measures to support the Chinese economy and the recent Federal Reserve rate cut kept the dollar on the back-foot.

The dollar hit a 14-month low against the euro on Wednesday as traders bet that the Federal Reserve will make another large rate cut at its November meeting on weakening labor optimism, while the yuan eased on growing doubts about the impact of a new round of Chinese stimulus.