In an opinion piece published on Wednesday, China’s Economic Daily said, “The yuan is expected to retain a two-way fluctuation, and market investors should not count on a lengthy one-way decrease.”
“Because China’s economic recovery is imbalanced, the global pandemic prognosis remains uncertain, and domestic inflation is moderate and manageable, China will likely sustain its support policies, including an acceptable monetary environment.”
“Yuan assets, such as equities and bonds, continue to draw international investors looking for high-growth opportunities.”
“As the Federal Reserve slows policy normalization to avoid asset bubble bursts, the dollar’s rise may be limited, helping to keep the China-US rate spread constant.”
The USD/CNY currency pair was last seen trading at 6.4737, essentially unchanged on the day after retreating from slightly below the 6.4800 mark./n
