HONG KONG: China’s yuan eased slightly against the firmer dollar on Tuesday, but losses were capped by better-than-expected export data.

China’s exports - one of the few bright spots in the sputtering economy - beat forecasts in August, expanding by 8.7% year-on-year by value, the strongest pace in 17 months, customs data showed on Tuesday.

Imports, however, missed forecasts and grew just 0.5%. That follows lower-than-expected inflation data published on Monday, highlighting still weak domestic demand.

By 0352 GMT, the yuan was 0.05% lower at 7.1179 to the dollar after trading in a range of 7.1170 to 7.1258.

“China’s economy continues to show diverging trends with weak domestic demand and strong export competitiveness, both reflecting the domestic deflationary pressure,” said Zhang Zhiwei, chief economist at Pinpoint Asset Management.