Chinese Yuan To Remain Supported By Economic Recovery-Journal

The yuan is expected to remain at a reasonable level against the U.S. dollar, supported by the continuous economic recovery in China while the U.S. economy faces increased pressures, the China Securities Journal reported citing analysts. The dollar index could rise further above 110, as the euro and the pound could further weaken on growth pressure and debt risks in the European economic outlook amid tight energy supplies. This could pressurise the yuan slightly, but any depreciation would be limited and smaller than that in other non-dollar currencies, the newspaper said citing analysts. The dollar index rose above 107 to a new high in nearly 20 years on Wednesday, while the onshore yuan fell only 22 basic points against the dollar, the newspaper added.