国际英语资讯:China Focus: Yuan tumble unlikely despite weakening_时事

国际英语资讯:China Focus: Yuan tumble unlikely despite weakening

Though the Chinese currency renminbi, or the yuan, weakened to a six-year low against the U.S. dollar Friday, analysts said a sharp drop is unlikely despite persistent depreciation pressure.

The central parity rate of the yuan retreated 247 basis points to 6.7558 against the dollar, according to the China Foreign Exchange Trade System (CFETS), the lowest level since September 2010.

The recent yuan depreciation can be attributed to a stronger dollar and growing downward pressure on the Chinese economy due to a possible correction in the high-flying property market, said Ren Zeping, chief economist at Founder Securities.

国际英语资讯:China Focus: Yuan tumble unlikely despite weakening1

The U.S. dollar index, which measures the greenback against six major currencies, has hit its highest level since March following positive economic data from the country.

The dollar may ascend to even higher levels amid mounting speculation that the Federal Reserve would raise the interest rate by the end of the year, analysts said.

China's reform to make its exchange rate mechanism more market-oriented also lead to higher volatility for the yuan, Wang Chunying, spokesman for the State Administration of Foreign Exchange, said at a press conference.

Analysts believed despite short-term volatility from a stronger dollar, the yuan will maintain overall stability and the chance for a sharp depreciation is slim, backed by stable economic growth, balanced fiscal condition and ample foreign exchange reserves.