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Yuan Unlikely To Fall Sharply Following Fed Rate Hike - Herald

MNI (Singapore)

There is no reason for a sharp depreciation of the yuan against the U.S. dollar following this week's Federal Reserve rate hike, the 21st Century Business Herald reported. The yuan’s mid-September breach of 7 was driven by expectations the Fed would hike 75bps and a sharp drop in China’s August export growth, a combination unlikely to repeat this year, the newspaper said citing Minsheng Securities analyst Zhou Junzhi. The strong dollar will exert greater pressure on non-dollar currencies other than the yuan as China and the U.S. are in different economic cycles, the newspaper said citing Zhou Maohua, analyst with China Everbright Bank. The domestic economy is recovering steadily with moderate inflation, sufficient policy room and a stable balance of payments, he added.

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