The yuan may continue to depreciate.....>

CHINA PRESS: The yuan may continue to depreciate and test the 6.9 level this

week, as the PBOC seems inclined to let the market set the prices and focus on

balancing internally, China Securities Journal reported, citing unidentified

market participants. China's relatively small size of forex reserve, strong U.S.

economy and the euro zone's dovish monetary policy may result in a strong U.S.

dollar and downward pressure on the yuan in the third quarter, the newspaper

said citing a research report by Ming Ming, chief economist of Citic Securities.

China should reintroduce the countercyclical factor in the pricing mechanism of

central parity rate to secure the bottom of the exchange rate and prevent the

extent of the depreciation, the newspaper said citing Ming.