SHANGHAI: China’s yuan eased against the dollar on Monday as weak economic fundamentals dragged on sentiment, outweighing benefits from exporters’ dollar sales towards the end of the year.
The yuan historically strengthens in December and January as Chinese exporters convert more of their foreign exchange receipts into the local currency for various payments, analysts at HSBC said.
Prior to the market’s opening, the PBOC set the midpoint rate around which the yuan is allowed to trade in a 2% band at 7.0933 per US dollar, the strongest level in six months.
The spot yuan opened at 7.1250 per dollar and was changing hands at 7.1287 at midday, 57 pips weaker than the previous late session close.
The global dollar index fell to 102.472 from the previous close of 102.55.
The offshore yuan was trading 32 pips weaker than the onshore spot at 7.1319 per dollar.
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