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Yuan to Trade in Wider Range: Journal

CHINA PRESS
MNI (Singapore)

The Chinese yuan may fluctuate in a wider range against the U.S. dollar, while any one-way movement cannot be sustained, the China Securities Journal reported citing analysts. Yuan may face depreciation pressure in Q3 if the Federal Reserve tightens its ultra-loose monetary policy as expected, which may drive up U.S. bond yields and lift the dollar index, the newspaper said citing Guo Lei, chief economist of GF Securities. The yuan has begun to weaken against the dollar yesterday after the PBOC raised FX reserve requirement ratio to slow appreciation, with the onshore yuan down 220 points to report 6.3827 as of 6:38 pm local time.

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