Business Standard

Yuan has no basis for long-term depreciation, says Chinese state media

The Chinese currency has weakened to two-year lows against the dollar this week, reacting to expectations of further aggressive interest rate hikes from the Fed and a domestic economic slowdown

yuan, notes
Premium

Representative Image

Reuters Shanghai
China's yuan has no basis for long-term depreciation, as the country's strong exports should offset a buoyant dollar and hawkish Federal Reserve tightening, state media said on Wednesday citing market analysts.
 
The Chinese currency has weakened to two-year lows against the dollar this week, reacting to expectations of further aggressive interest rate hikes from the Fed and a domestic economic slowdown due to anti-COVID controls.

Trading at 6.8532 to the dollar at 0225 GMT, the yuan has fallen more than 1.6 per cent against the greenback since the People's Bank of China (PBOC) surprised the market by lowering two key interest rates

Disclaimer: No Business Standard Journalist was involved in creation of this content

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 24 2022 | 8:55 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com