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Yuan Could Stop Falling Against USD In Q3

CHINA PRESS
MNI (Singapore)

The yuan may stop depreciating against the U.S. dollar, but will not record a strong reversal in Q3, as the U.S. Federal Reserve continues to hike rates, which will support USD in the short term. China may still face economic downward pressure in Q3 with unemployment likely to rise mid-year, while the U.S. job market remains resilient with core inflation at a relatively high level, said Li Chao, chief economist of Zheshang Securities. The yuan may gradually rebound from its floor in Q4 when the domestic economy improves, while the U.S. faces pressure. CNY rose to CNY7.19 on Wednesday, a cumulative increase of over 500bp, or 0.7%, since last Friday. (Source: Jiemian News)

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