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China Should Act Early To Prevent Yuan Overshooting

CHINA PRESS
MNI (Singapore)

Chinese authorities should take preemptive measures to prevent the yuan weakening too much, as the U.S. Federal Reserve maintains its hawkish interest rate stance, according to a forex trader in Hong Kong. The issuance of CNY35 billion central bank bills in Hong Kong on Tuesday has limited overseas speculative capital and pushed CNY to CNY7.3 against USD. China’s central bank has several tools to stabilise the currency, while the yuan's outlook also depends on whether China's economic stimulus policies are effective and the real-estate market de-risks. (Source: 21st Century Business Herald)

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