Overseas Investors See Yuan Stabilising At 6.5-6.6-Herald

More foreign investment institutions set yuan equilibrium levels at CNY6.5 to CNY6.6 against the U.S. dollar, over 2,000 basis points higher than that at end-April, the 21st Century Business Herald reported citing traders. The falling dollar index has driven the yuan rally in the past week, but more importantly, overseas investors are correcting previous mispricing following China’s proactive moves to stabilise growth and resume production from Covid-19 lockdowns. Overseas institutions prefer the relatively stable economic fundamentals of China, as the Fed’s continuous rate hikes increases the risk of U.S. recession, the newspaper said citing an unnamed hedge fund manager.