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 commentary on Thursday. It added that the Chinese economy’s strength will prevent the yuan from dropping too far.