Depreciation pressure on Chinese yuan has eased
Currency rises sharply against US dollar for three trading days
The depreciation pressure on the Chinese yuan in recent months has eased, and it is likely to fluctuate against the US dollar, said People’s Daily Overseas Edition.
The yuan has appreciated sharply against the US dollar for the past three trading days. The central parity of the yuan against the dollar was 6.7909 last Friday, 0.72% higher than the 6.8403 reported last Tuesday.
Chen Kaifeng, the chief economist at Forex Signs Financial Management Co, attributes the appreciation of the yuan to the Fed hiking interest rates more slowly than expected, the dollar’s overall depreciation, and concerns about US economic growth.
Chen also believes that the depreciation pressure on the yuan will continue to ease this year, judging from the strength of the current rebound.
This year the yuan could be affected by multiple factors, including the progress of Sino-American economic and trade consultations, China’s economic fundamentals, and the performance of major economies, the report said, citing a source at Bank of China’s New York branch.