China's yuan eased to more than two-week low against the dollar on Monday after the central bank set a lower daily trading range midpoint and China posted weaker-than-expected March trade data. China's March exports badly missed expectations, falling 15 percent from a year earlier in dollar-denominated terms, while imports fell by 12.7 percent. That left the country with a trade surplus of $3.08 billion for the month.
"We saw more dollar purchases after the data release," said a trader at an Asian bank in Shanghai. "However, such impact should not last long."
The People's Bank of China (PBOC) set the midpoint rate at 6.1395 per dollar prior to market open, weaker than the previous fix at 6.137.
The spot market opened at 6.2090 yuan per dollar, and quickly weakened after the trade data was released. By midday the yuan was at its weakest in more than two weeks, trading at 6.2149, standing 0.11 percent weaker than the previous close and 1.23 percent away from the midpoint.
The spot rate is allowed to trade 2 percent above or below the official fixing on any given day.
Analysts said the yuan was unlikely to move sharply in the short term despite a run of disappointing economic data and the continued strength in the dollar index.
"A stable currency is needed for China to implement 'One Belt, One Road' projects and to achieve the goal to internationalize the yuan this year," said Zhu Qibing, a macro analyst at China Minzu Securities in Beijing.
The so-called "One Belt, One Road" initiative, a network of railways, highways and other infrastructure, would create a new Silk Road, which President Xi Jinping envisages generating $2.5 trillion in annual trade with the countries involved in a decade.
Zhu also forecast the yuan would be a bit volatile for the rest of April, and weaken slightly in May as expectations for a US interest rate rise were likely to build up.
The offshore yuan was trading at 6.2255 per dollar, 0.17 percent weaker than the onshore spot market.
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