The yuan is not likely to drop as.......>

CHINA PRESS: The yuan is not likely to drop as significantly against the dollar

as it did Tuesday, when it experienced the biggest fall in two months, China

Securities Journal reported Wednesday. 

  - Counter-cyclical factors are helping to reduce yuan fluctuations as the

central parity on Tuesday was not as weak as the market expected, the newspaper

said; 

  - As authorities are strengthening their macro prudential management, the yuan

is expected not to fluctuate to a large degree, the newspaper said;

  - Tuesday's drop was due to an increasing need for dollars amid the holiday

season, when much more Chinese plan to travel abroad, the newspaper said, adding

that the lack of reflection of yuan trading price on Friday night due to the

holiday and the rise of the dollar also contributed to the drop. However, market

insiders cited by the newspaper have said such factors are not sustainable, and

therefore further depreciation of the yuan is unlikely.