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LONDON, Aug 18 Reuters - A 6 percent drop in Chinese stocks on Tuesday drove currency investors into safe-haven currencies such as the yen and the Swiss franc, albeit in thin volumes. The British pound, though, was an outperformer, boosted by better-than-expected inflation data for July, including an uptick in core inflation, which hit a five-month high.

The inflation numbers bolstered expectations that the Bank of England will raise interest rates in coming months and helped sterling gain 0. Earlier, China's main Shanghai Composite and Shenzhen indices both lost more than 6 percent as investors bet that demand in China will cool further, weighing on the trade-reliant region and throwing more doubts on a global recovery. The dollar fell 0. The euro was also down 0. Investors are cautious about whether the Fed will raise rates, given a slowdown in China and global deflationary conditions.

All these are weighing on the dollar," said Petr Krpata, FX strategist at ING. Against a basket of major currencies, the dollar was flat on the day, trading at It was still holding above a one-month low of China's central bank has since tempered the yuan's slide, soothing anxiety forex stock market after hours rotten a further sharp devaluation - a scenario that markets feared could lead to a global currency war.

However, the latest slide in Chinese stocks has reignited fears that Beijing may still be intent on a deeper devaluation. Many still expect the Fed to move in September, though much depends on the robustness of U. ONESOURCE Global Trade Management. Solutions for Emerging Business. Solutions for Financial Institutions. Thomson Reuters FX Trading. Thomson Reuters Practical Law.

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Saudi banks strong in light of brewing changes in industry; region subdued. Huge growth potential in global Islamic banking market. UAE's Etihad Airways and partners' bonds nosedive on Alitalia concerns. UAE's Dana Gas says will work to reach standstill agreement with sukuk holders. Not sure what to wear? Ooredoo reduces roaming rates throughout the GCC. Cashless society getting closer, survey finds. Cyber extortion demands surge as victims keep paying- Symantec.

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Road safety, congestion need more efforts in UAE. New Egyptian investment law to be issued in May - PM. Kuwait delays deliberation on PM's grilling. Israeli strike hits Iranian arms supply depot in Syria's Damascus. Qatar approves draft law on bankruptcy. Riyadh's new financial hub struggles with ownership uncertainty. Pakistan issues new rules for foreign hunters. Saudi Shoura rejects sports colleges for girls. UAE visa on arrival for Indians with US visa from May 1.

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UAE most popular destination among regional travelers. Indian expats pre-book to buy gold on Friday. Etihad Airways launches rewards programme designed for fashion community. Vinod Khanna, veteran Bollywood actor, dies at Field of fake Trumps battle it out in LA. Pakistan call off put optionsschein omega quantum of Bangladesh.

Yasir spins Forex stock market after hours rotten to test victory over Windies. FOREX-Stock market losses aid safe-haven currencies, pound jumps after UK data. People In The News. UK's British Airways reaffirms regional commitment by appointing Robert Williams as head of sales - Asia Pacific and Middle East. British Airways reaffirms regional commitment by appointing Robert Williams as Head of Sales - Asia Pacific and the Middle East.

Bahrain's Gulf Air appoints VFS Global to provide visas for Bahrain visitors. Aldar appoints Emaar Hospitality Group's Vida Hotels and Resorts to operate Shams Marina resort on Abu dhabi's reem island. Etihad Aviation Group appoints Robin Kamark as Chief Executive Officer, Airline Equity Partners.

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