China: China’s currency, the Yuan, has fallen to its lowest point in five weeks due to concerns about Asia’s export growth and upcoming U.S. inflation data.
South Korea’s export data showed an 11.9% increase from last year but a decrease in exports per working day of 14.5%.
This has harmed the Yuan, as well as other Asian currencies.
The Yuan opened at 6.8349 per dollar and traded at 6.8 293 at midday, 135 pips weaker than the previous close.
The People’s Bank of China set the midpoint rate at 6.8151 per dollar, weaker than the previous fix.
The spot rate is allowed to trade with a range of 2% above or below the official rate.
Investors are keeping a close eye on the U.S. consumer price index (CPI) data, which will be released on Tuesday.
A strong inflation report could keep U.S. interest rates higher for longer.
In addition, China recently reported a record high of 4.9 trillion yuan in new bank loans for January, but the breakdown showed weak retail loan growth.
The offshore Yuan was 0.14% weaker than the onshore spot, and the one-year forward value for the offshore Yuan indicates a potential appreciation of 2.51% within 12 months.