In the spot market, onshore yuan opened at 6.4380 per dollar and was changing hands at 6.4330 at midday, 15 pips firmer than the previous late session close.
"The PBOC's Q1 monetary policy report suggests that the central bank is not worried about imported inflation, despite that it expects PPI to rise further in Q2 and Q3," said Frances Cheung, rates strategist at OCBC Bank in Singapore.
Export growth unexpectedly picked up in April, data showed on Friday, as the world's second-largest economy extended its recovery from the COVID-19 pandemic.
Some market participants say developments around Chinese state-owned bad loan giant China Huarong Asset Management Co have also lent a cautious air to yuan trading.
The domestic currency market largely ignored the US Treasury Department's decision not to label China as a currency manipulator in the first semi-annual foreign exchange report issued by Treasury Secretary Janet Yellen.
The Wall Street Journal previously reported that Ma had offered in a November meeting with regulators to hand over parts of Ant to the Chinese government.
Ant denied that a divestment of Ma's stake was ever under consideration. "Divestment of Mr. Ma's stake in Ant Group has never been the subject of discussions with anyone," an Ant spokesman said in a statement.
"We expect real GDP growth to have jumped to 20% year-on-year in Q1 from 6.5% in Q4-2020, led by an overheated industrial sector and a recovering services sector," economists at Standard Chartered said in an earlier note.
"Although China's aggregate finance grew at a slower pace than last year, yuan loan growth was faster than a year ago, showing that shadow banking has continued to shrink," Iris Pang, chief economist for Greater China at ING, said in a note.
The dollar sank to an almost two-week low against its major trading partners, moving in tandem with retreating Treasury yields from recent peaks despite signs of a robust US economic recovery.
In the spot market, the onshore yuan trading unchanged fron the open at 6.5550 per dollar, 125 pips firmer than the previous late session close on Friday.
The PBOC has kept rolling over 10 billion yuan worth of maturing reverse repos, resulting in zero net cash injection for 23 straight trading days, which included Wednesday - the last trading day of the month.
The People's Bank of China (PBOC) set the midpoint rate at 6.5098 per dollar prior to the market open, 239 pips weaker than the previous fix of 6.4859.
Sino-US relations re-emerged as another key market focus as US Secretary of State Antony Blinken will meet with top Chinese officials on March 18 in Alaska, the White House said on Wednesday, the first high-level in-person contact between the two sparring countries under the Biden administration.
The weaker fixing has pushed China's trade-weighted yuan basket index to 97.06, the highest since June 22, 2018, according to Reuters' calculation based on official data.