Yuan slips as market waits on economic data

SHANGHAI: China’s yuan slipped against the dollar on Monday, as market participants adopted a cautious approach ahead of key economic data and policy meetings for more clues on the health of the broader economy.

China has reported mixed factory activity data for November, according to official and private surveys, raising doubts on whether recent stimulus measures are sufficient to bolster a fragile economic recovery. China is due to report trade and inflation data later this week.

Prior to market opening, the People’s Bank of China (PBOC) set the midpoint rate, around which the yuan is allowed to trade in a 2% band, at a six-month high of 7.1011 per dollar, 93 pips firmer than the previous fix of 7.1104.