Yuan to Pause after Gaining on Dollar: Journal

The Chinese yuan may fluctuate in both directions after gaining nearly 1,000 bps against the U.S. dollar in the past month as market views on the dollar index diverge, the China Securities Journal reported. Some observers see the dollar index weakening as supporting factors such as U.S. bond yield gains and the short-term impact of fiscal stimulus fade, while some believe the dollar will strengthen from mid-Q2 as the U.S. economic recovery outpaces Europe and Japan, the newspaper said. The yuan may still be supported by China's steady recovery and booming exports as overseas supply could still be interrupted by the resurgence of Covid-19, the Journal said.