CHINA PRESS: Yuan Likely To Appreciate Further This Year

Analysts expect the yuan to strengthen further against the U.S. dollar within the year, supported by exporters’ foreign exchange settlement, with the intensity dependent on an economic improvement, Yicai.com reported. Exporters hold about USD500 billion in deposits of which USD100-200 billion will be settled if the offshore yuan rises above 7.1, the newspaper said, citing estimates from Zhang Meng, forex and interest rate strategist at Barclays. Exporters have accumulated dollars over the past two years given yuan pessimism and are likely to continue holding unless the Federal Reserve starts a substantial rate-cut cycle, the newspaper said, citing analysts.