Yuan Appreciation May Not Continue in Medium Term: Guan Tao

The Chinese yuan may not maintain its strength since October, but will likely fluctuate under the longer-term prospect of higher U.S. interest rate and China losing its export dominance, the China Securities Journal reported citing analysts including Guan Tao, the chief economist of BOC International. China's export advantage may not continue as the pandemic-hit global supply chain recovers and diverts some orders to other economies, reducing its trade surplus, Guan was cited saying. The Federal Reserve may slow the pace of its balance sheet expansion by year-end, pushing up interest rates and drawing funds back to the U.S. from emerging markets, the newspaper said citing Cheng Qiang, chief analyst at CITIC Securities.