Yuan weakens toward key psychological level amid data misses

Disappointing Chinese economic data this week is feeding through to the currency market, weakening the yuan toward the key psychological 7-per-dollar level.

The offshore yuan traded around 6.9962 per dollar Wednesday, its weakest level this year, after falling 0.6 percent Tuesday. A breach of seven would be the first since December 28.

China’s industrial output, retail sales and fixed investment grew at a much slower pace than expected in April, prompting calls for more policy stimulus to bolster growth. A climb in Treasury yields, helped in part by positive data on the US housing sector, also aided the dollar.