The yuan exchange rate is very likely...>

CHINA PRESS: The yuan exchange rate is very likely to continue its two-way

fluctuation and, in general, remain stable, the China Securities Journal

reported Friday. The recent strengthening of the yuan against the dollar after

the National Day and Mid-autumn Festival holiday was due to China's

better-than-expected economic fundamentals, the dollar index's weakening, less 

central bank intervention, improved international capital flows, and a reduction

of foreign currency demand domestically due to fewer Chinese citizens traveling

overseas, the newspaper said. Unidentified experts were cited as saying the

future status of the dollar would continue to be the main factor influencing the

dollar-yuan exchange rate. Given the U.S. economy is maintaining modest growth,

its tax reform is advancing, and the shrinking of the Fed balance-sheet has

officially started, the chance for the dollar to dip or rise significantly is

small, so the yuan will not experience a big drop. Strong economic growth,

prudential and neutral monetary policy, a better demand-supply balance of

foreign exchange and less pressure from cross-border capital flows will also

contribute to a stable yuan, the newspaper said. (China Securities Journal)