Anna 
Chinese inflation data released over the weekend weighed on the yuan and prompted mild weakness in other currencies exposed to China.
The yuan’s USDCNY pair rose 0.1% on Monday, reaching a two-week high, following mixed signals from Chinese inflation figures.
Consumer price index (CPI) inflation in April exceeded expectations, supported by ongoing stimulus measures from Beijing that boosted demand. However, producer price index (PPI) inflation continued to decline for a 19th consecutive month, reflecting sluggishness in Chinese business activity.
The data underscores the ongoing challenges faced by Beijing in stabilizing economic growth.
Traders also remained cautious about China amid reports last week that the Biden administration was preparing additional trade tariffs, particularly targeting China’s electric vehicle sector. This development raised concerns about a potential resurgence of trade tensions between the world’s largest economies.
Other currencies linked to China experienced slight losses on Monday. The Australian dollar’s AUDUSD pair declined by 0.1%, while the Singapore dollar’s USDSGD pair saw a modest increase.
Similarly, the South Korean won’s USDKRW pair declined by 0.1% in response to the developments related to China and trade concerns.
