Yuan won’t likely drop much more against dollar - Financial News

Financial news reported an article on the Chinese yuan, noting that the RMB market is expected to remain stable overall and that the domestic currency is unlikely to drop further  versus the USD.

Key Quotes:

“With the exchange rate formation mechanism of the rules, market transparency and further enhance our ability to adapt to growing market players, market sentiment is more rational and stable.” 

“Although the RMB exchange rate fluctuations in the external environment, but the domestic market is expected to remain stable overall.” 

“RMB exchange rate short-term fluctuations are normal, are also within the scope of interpretable.”

“Experts said that the RMB against the US dollar weakness is mainly due to the Fed rate hike is expected to heat up to promote the strengthening US dollar.” 

“Market generally believes that the dollar is the current round of the RMB exchange rate depreciation of the direct driving force, regardless of China's economic fundamentals or whether the RMB exchange reform process.“

“Coupled with the dollar may have been near the top of the current cycle, the further depreciation of the RMB against the US dollar was not much room.”