As foreign-exchange demand balances.....>

CHINA PRESS: As foreign-exchange demand balances the yuan may see two-way

fluctuations and the currency may also appreciate, the China Securities Journal

reported Wednesday. The yuan ended 11 consecutive days of rise Tuesday. The

PBOC's decision to remove risk provisions for currency-forward contracts reduces

companies' costs for purchasing foreign exchange and is beneficial for liquidity

stability in offshore yuan, the newspaper said quoting analysts. China

regulators may worry a stronger yuan may curb export growth because of the

yuan's rapid strengthening over the past two weeks and the PBOC's new policy, to

some degree, signals it isn't hoping for one-way strengthening of the yuan. The

yuan may fall in the short term and two-way fluctuations are likely and its

outlook depends largely on the dollar index, the report said. (China Securities

Journal)