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Yuan Unlikely To Keep Falling After Breaking 7 - Daily

CHINA PRESS
MNI (Singapore)

There is no reason for an ongoing depreciation in the yuan, and the currency may rebound in Q4 as the U.S. dollar Index peaks and falls on a slower pace of Federal Reserve hikes and as China's economy rebounds, the Securities Daily reported citing analysts. The offshore yuan breached the 7 mark against the dollar on September 15, while the onshore yuan traded as low as 6.998. The yuan weakness has been driven by the U.S. dollar rally, but the yuan is relatively stable compared to currencies of other major developed economies. The economic recovery in Q3, moderate inflation, and surpluses in the current account and direct investment should support the stability of the yuan.

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