Dollar: Yuan and Parity Rate

dollar: Facing uncertainty in US-China trade, it is possible that China may take the opportunity to release the pressure in advance, allowing the yuan to weaken somewhat as the dollar rises, said Huili Chang, analyst at China International Capital Corp, according to Global Times China. Although the yuan was weaker against the dollar, it remained stable relative to a basket of currencies. The central parity rate of the yuan weakened 204 basis points to 6.8495 against the dollar, according to the China Foreign Exchange Trading System CFETS . This is the eighth-consecutive day that the yuan central parity rate has fallen. This is in sharp contrast to the situation in early January, when the yuan declined against both the dollar and the basket, Chang noted. Chang also ruled out the possibility of substantial depreciation in the longer term, maintaining a forecast of 6.98 yuan to the dollar for the end of 2017. Looking ahead, the yuan may come under short-term pressure, but it has limited room to depreciate over the medium term. (news.financializer.com). As reported in the news.