Dollar gains, yuan declines after weak Chinese data

US dollar consolidated its gains today, Tuesday, as traders struggled to keep pace with the divergent growth expectations of the two largest economies in the world, but they paid little attention to a disappointing new set of Chinese trade data.

Today’s data showed that China’s imports and exports fell much faster than expected in July, as imports fell 12.4% from a year ago and exports 14.5%, in another sign that China’s economic recovery is stalling.

The fall of the yuan and the Australian and New Zealand dollars increased initially after the release of the data, but the three currencies later compensated for some losses thanks to bets that the weak data will reinforce the need for more stimulus measures from Beijing.

The yuan declined in foreign transactions, recording its lowest level in more than two weeks at 7.2334 per dollar, as well as a decline in the internal market to its lowest level in more than two weeks at 7.2223 per dollar.

The Australian dollar fell 0.38 to $ 0.6549, while the New Zealand dollar fell 0.55% to $ 0.60735.

The dollar rose broadly and gained 0.6 against the Japanese yen. It recorded in the latest transactions 143.26 yen, while the pound sterling fell 0.25% to 1.2753 dollars, while the euro fell 0.09% to 1.0991 dollars.

The dollar index rose 0.18% to 102.26, moving away from its lowest level in a week, which it recorded last Friday, after the issuance of a mixed report on jobs in the United States, as it indicated a decline in the strength of the labor market, while continuing its strength.