The tightly managed Chinese yuan, which recorded its biggest weekly jump in 2½ years last week, is set to continue on its appreciation path for the remainder of the year as the economy begins to stabilize, say strategists.
“The PBoC (People’s Bank of China) has sent a strong message – through much stronger midpoint fixings over the course of last week – that it doesn’t want further depreciation of the currency. It would like a period of stability going forward,” Khoon Goh, senior foreign exchange strategist at ANZ told CNBC on Monday.
“This is a reflection that authorities are more comfortable with how the economy is faring,” he said.
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