Investing.com – The u.s. dollar was little changed, while the chinese yuan slid after the data have shown that the country’s exports had recorded the sharpest contraction in 2 years, in December.
The dollar index, which tracks the greenback against a basket of other currencies, slipped 0.07% to 95,195.
This week, investors will focus on the data of Tuesday on inflation in producer prices in the United States, while continuing to evaluate the prospects of policy tightening from the federal Reserve this year.
“The outlook for the policy of central banks reached their peak in terms of the support of the u.s. dollar, and the widening of the deficits, fiscal and current account, should lead to a weak currency in the medium term,” said Shaun Osborne, chief strategist of the foreign exchange transactions, Bank of nova Scotia in Toronto.
The data released on Friday showed that consumer prices in the u.s. in December decreased for the first time in nine months, although they have seemed to have little impact on the market.
At the same time, the pair USD / CNY rose slightly by 0.1% to reach 6,7674. The data published Monday show that China’s exports have recorded an unexpected drop of 4.4% in December compared to the previous year, while imports have also lost 7.6%, their highest since July 2016.
The chinese exports to the United States fell from 3.5% in December, while their imports from the United States decreased from 35.8% for the month, revealed the data.
The people’s Bank of China (PBOC) fixed the reference rate for the yuan to 6,7560, against 69090 for Friday.
Elsewhere, the USD / JPY pair fell 0.4% to 108,12.
The pair AUD / USD and the pair NZD / USD were both down 0.5%.