Yuan Rally Difficult to Maintain: Journal

The yuan, which traded near a four-year high against the dollar last week, may lose steam pressured by liquidity tightening measures outside China, a rising U.S. dollar index, and the narrowing China-U.S. interest spread, the China Securities Journal reported citing analysts. Support from exports and forex settlement could also be weakening, and the currency will again be close-related to the dollar index movement, the newspaper said. However, a strong inventory of the dollar inside China and businesses' demand to convert the dollar to yuan could help lessen the yuan's depreciation, the newspaper said. The Chinese currency surged past 6.33 last week.