Yuan Correction Short-term, No One-Way Depreciation: Daily

The yuan is likely to maintain a two-way fluctuation and market participants should not bet on a prolonged one-way decline, the Economic Daily said in a commentary. China will likely maintain its support policies, including an appropriate monetary environment, as its economic recovery is unbalanced, the global pandemic outlook remains uncertain and the domestic inflation is moderate and controllable, the newspaper said. Yuan assets, including stocks and bonds, continue to attract foreign holdings with large growth potential, the newspaper said. The dollar's appreciation may also be constrained, helping keep China-U.S. rate spread stable, as the Federal Reserve will slow its policy normalization to prevent bursting asset bubbles, the daily said.