Yuan Ends 10-Day Drop on Signs China Fending Off One-Way Wagers

  • Declines were due only to Fed rate expectations, Xinhua says
  • Currency will lose 3% by the end of June, analyst predicts

China Outlook: More Currency Weakness Ahead?

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The yuan halted its longest losing streak on record amid speculation China’s central bank is seeking to avoid one-way depreciation bets at a time of rising capital outflows.

The drops of the past two weeks were "only a market phenomenon spawned by expectations of the rate hike" by the Federal Reserve, the official Xinhua News Agency said in a commentaryBloomberg Terminal on Thursday. It added that the Chinese economy’s strength will prevent the yuan from dropping too far.