Yuan May Further Fluctuate But Not Depreciate Sharply: Daily

The yuan may still fluctuate widely in the short term, but it is unlikely to sharply depreciate as a rapid surge in the U.S. dollar index is approaching its end, the Securities Daily reported citing analysts. The sharp appreciation of the U.S. dollar in the short term is the main driving factor for recent yuan weakness. The 10-year U.S. bond yield has risen above 3%, basically reflecting the expectation for Fed rate hikes and balance sheet reductions within the year, the newspaper said citing Wang Qing, chief analyst at Golden Credit Rating. On Monday, the onshore yuan once dipped to an intraday low of 6.7235, the lowest since Nov. 5 2020, while the dollar index has stood above 100 since mid-April, the newspaper said.