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Yuan Rally May Last to Yearend before Depreciating: Journal

CHINA PRESS
MNI (Singapore)

The Chinese yuan may remain strong by Dec. 31 but depreciate next year as foreign exchange settlements decrease and if the PBOC steps in to prevent one-way bets, the Shanghai Securities Journal reported citing analysts. The yuan may be pressured by the expected U.S. rate hikes, reduced capital inflow, slower growth of trade surplus and external uncertainties next year, the newspaper said citing Hang Seng China Chief Economist Wang Dan. The amount of dollar-to-yuan settlements by Chinese companies has started to decrease in October, weakening support for yuan, the newspaper said citing analysts from Industrial Securities.

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