Yuan Likely To Rebound Gradually

The yuan will likely rebound gradually as economic growth continues to improve and the current account maintains a surplus, alongside difficulty for the U.S. dollar index to rise further, said 21st Century Business Herald in a commentary. A large trade surplus – CNY4.4 trillion in the first three quarters – supports the currency, with capital outflow pressure eased on the recent economic rebound. The dollar is hard to further strengthen significantly, as the Federal Reserve is seen to end rate hikes. Meanwhile, the central bank has sufficient policy tools and will resolutely guard against the risk of overshooting. The yuan has fluctuated about the 7.3 level against the dollar in recent months.