onshore yuan: The central parity rate of the Chinese currency weakened 230 basis points to 6.8115 against the dollar on Friday, the lowest rate since September 2010, according to the China Foreign Exchange Trade System, according to Global Times China. The onshore yuan was quoted at around 6.81 as of 11am on Friday, while offshore yuan traded in Hong Kong sat at about 6.83 against the US dollar, according to the Foreign Exchange Trade System. Although the yuan depreciation will persist in the short-term, mainly due to the influence of monetary policies Trump is likely to implement after assuming the presidency, such fluctuations will be within a controllable range, experts predict. The US currency rebounded on Thursday, just a day after Donald Trump presidential win surprised the world and prompted the dollar steep fall earlier this week, Zhou Yu, director of the Research Center of International Finance at the Shanghai Academy of Social Sciences, told the Global Times on Friday, noting that the market has absorbed the panic over Trump victory. The expectations of an interest rate hike by the US central bank, which is projected to take place in December and strengthen the dollar, is another factor behind the yuan downward pressure, Xu Gao, chief economist at China Everbright Securities Co, told the Global Times on Friday. The US dollar index, which tracks the greenback against a basket of six major currencies, was trading 0.12 percent higher on Thursday.
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