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Yuan Rally Seen Sustained as Dollar Weakens: Financial News

CHINA PRESS

The strengthening of the yuan may continue into H2 given the weakening dollar index and as China scales back lending, the PBOC owned Financial News reported citing CIB Research. China recent reduction in the dollar's weighting in the China Foreign Exchange Trade System (CFETS) currency basket is intended to reduce the influence of one single currency, the newspaper said citing Ming Ming, the deputy director of CITIC Securities Research Institute. China should beware of inflation as a strong yuan leads to higher asset valuations, the newspaper reported citing Qu Qiang, a researcher from the Renmin University.

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