Offshore yuan CNH dropped 0.56%.........>

CHINA PRESS: Offshore yuan CNH dropped 0.56% during the Spring Festival after

some fluctuations during the period, Securities Daily reported Thursday. 

 - The fluctuations put an end to the appreciation seen over the past two weeks,

and shows market expectations have diverged. Less foreign exchange settlement

and increased need for foreign currencies for Chinese outbound tourism have both

contributed to the dip as well. 

 - US dollar is stabilising and trending stronger, restraining further gains in

the yuan. 

 - The PBOC's Monetary Policy Report for the fourth quarter stressed the need to

deepen reform of the yuan exchange rate formation schedule. It noted that

continuing the reform would increase the market's role in deciding the yuan

exchange rate, and government intervention would decrease.