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Yuan Rally May Be Interrupted by Fed Rate Hike: News

CHINA PRESS
MNI (Singapore)

The yuan may not continue to appreciate should the Federal Reserve starts rate hike this month, despite its recent rally coming at a time when China's trade surplus is at a record high and global risk aversion rises on geopolitical conflicts, the Shanghai Securities News reported citing analysts. The strong foundation of the yuan will not fade away quickly in 2022, but may become more flexible in depreciation so to help balance the divergence between China-U.S. monetary policy, the newspaper said citing Zhong Zhengsheng, chief economist of Ping An Securities. Both onshore and offshore yuan reached the 6.31 mark against the U.S. dollar on Tuesday, with the intraday highs hitting 6.3048 and 6.3071 respectively, hitting new highs again since April 2018, the newspaper said.

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