China's yuan fell to a 16-month low on Wednesday, pressured by a strong dollar and tariff threats from U.S. President-elect Donald Trump's incoming administration, despite the central bank setting stronger-than-expected guidance.

The dollar eased a touch on Monday but stayed close to a two-year peak, as traders awaited a raft of U.S. economic data releases this week headlined by December's nonfarm payrolls report, for further clues on the Federal Reserve's rate outlook.

On Monday, the dollar slipped a little, staying close to two-year highs. Meanwhile, traders will look at key U.S. economic reports this week for more information on what it means for the Federal Reserve to raise interest rates.