Moderately Weaker Yuan Beneficial To Stabilising Exports-Times

Moderate depreciation for the yuan is conducive to maintaining export competitiveness against the backdrop of a global economic downturn, and is a positive when it comes to stabilizing China’s growth, the Securities Times wrote. The yuan has shown resilience when compared with the recent sharp decline in the euro and Korean won, as the U.S. dollar index reached a 20-year high. The newspaper played down any impetus from the recent movement in interest rate differentials, suggesting such moves have a limited impact on the yuan, as no obvious foreign capital outflows were triggered after the PBoC’s surprise rate cut in mid-August.