FXStreet (Mumbai) – There is no need to worry about sharp yuan depreciation and there is no basis for long-term continuous depreciation, the PBOC-owned Financial News says in a commentary via MNI.
As reported by the Financial News, “Recent yuan weakness was with a stronger U.S. dollar and expectations of a U.S. Federal Reserve rate rise. The pace of yuan depreciation and volatility against the U.S. dollar is smaller than that of other currencies. China’s medium to high economic growth and strong current-account surplus will decide the yuan’s long-term trend. In the future two-way volatility will become normal and the yuan exchange rate will remain basically stable around a reasonable and balanced level”.
(Market News Provided by FXstreet)