Chinese Yuan Eases on Soft Trade Data

The offshore yuan eased to around 6.93 per dollar, remaining under pressure as disappointing Chinese trade data added to concerns that the country’s economic recovery might be standing on shaky ground.

China’s imports contracted sharply in April, while exports grew at a slower pace amid softer domestic demand and weakening global growth.

Latest data also showed that manufacturing activity unexpectedly shrank in April.

Investors now look ahead to Chinese inflation data on Thursday for more clues on the state of the world's second-largest economy.

Externally, the yuan faced pressure ahead of key US inflation reports this week that could influence the Federal Reserve’s next interest rate decision.