The Chinese yuan slumped to a new multi-week low against the euro during Monday's early trading after a report showed that China's consumer prices fell for the third straight month.
The National Bureau of Statistics said that consumer prices in China fell 1.5 percent on year in April, roughly in line with expectations for a 1.4 percent annual decline after the 1.2 percent fall in March and the 1.6 percent contraction in February.
Food prices were down 1.3 percent on year, while non-food prices fell an annual 1.5 percent. In April 2008, inflation was 8.5 percent.
The continued decline in consumer prices comes as China is trying to combat a severe economic slowdown, brought about by the global financial turmoil.
Meanwhile, producer prices declined 6.6 percent on year in April, falling for the fifth consecutive month. It was more than expectations for a 6.3 percent contraction after the 6 percent annual fall in March and the 4.5 percent decline in February.
Last week People's Bank of China adviser Fan Gang said China's economy is expected to grow 7%-8% in 2009 and 2010. The Chinese economy grew 6.1% year-on-year in the first quarter, slower than 6.8% increase in the previous quarter. The World Bank has forecast that the Chinese economy will grow by 6.5% this year, the lowest rate of growth since 1990.
In its quarterly monetary-policy report released last week the bank said that the government measures to revive the economy have started showing results. Those measures are expected to allow growth to remain stable and quite fast this year.
In early Asian deals on Monday, the Chinese yuan tumbled to its lowest point since March 24, 2009 against the European currency. At about 11:20 pm ET, the Chinese currency touched 9.3234 against the euro, compared to Friday's closing value of 9.2877. On the upside, the next likely target level for the yuan is seen at 9.38.
People's Bank of China has set today's central parity rate for euro-yuan pair at 9.2977.
The Chinese yuan bounced back against the US dollar after falling to a 1-week low of 6.8300 during Monday's early Asian trading. As of now, the pair is trading at 6.8120, and the next upside target level is seen around 6.810. At Friday's New York session close, the pair was quoted at 6.8224.
People's Bank of China has set today's central parity rate for dollar-yuan pair at 6.8224. The pair is allowed to move 5% above or below the target rate.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.