Yuan to Maintain Strength Supported by Strong Exports: Newspaper

The yuan is likely to maintain its recent strength in the near term supported by China's strong exports, businesses' demand for converting their forex holdings and the easing of relations with the U.S. after the video summit between the two presidents, the official Economic Daily said in its frontpage citing analyst Wang Qing of Golden Credit Rating. The Chinese currency broke the 6.37 resistance and now trades the highest since June 1, while the dollar index also strengthened. However, the yuan may not be on an appreciation path given China is likely to pursue a degree of structural loosening to support its growth while the U.S. begins tapering, said the newspaper.