Yuan May Strengthen as Global Capital Favors Low-risk China: Herald

The Chinese yuan could strengthen above 6.32 against the U.S. dollar should global capital continue to flow into China’s stock and bond markets to hedge risks amid escalating Russia-Ukraine tensions and concerns about other developing markets' debt risks posed by U.S. tightening, the 21st Century Business Herald reported citing FX traders. On Wednesday, the onshore yuan once hit 6.3205 against the dollar, the highest since April 2018. The monetary authority may take measures if the yuan surges above 6.25, as it could be driven by speculative forces, the newspaper cited traders as saying. In the first three weeks of 2022, the net inflow of foreign capital into the A-share market reached a record daily average of US$413 million, the newspaper said.