国内英语资讯:News Analysis: Robust yuan points to market confidence in Chinese economy_时事

国内英语资讯:News Analysis: Robust yuan points to market confidence in Chinese economy

The overall dovish tone by the U.S. Federal Reserve has recently added pressure on the dollar, causing the yuan to strengthen, as the market has already factored in the slowdown in future rate paths, experts said.

The dollar index, which measures the greenback against six major peers, has been sliding on a downward path for four trading days of the past week, except Thursday.

"The dollar index has turned lower since the start of the week due to one major reason, the Fed has continued to become more dovish with respect to interest rates in the United States and the pace going forward," Minardo told Xinhua.

"The overall consensus is for rates to remain on hold for the short to medium term and as a result the market has sold the dollar," he added.

The central bank pledged a "patient and flexible" approach to future policy tightening moves, as a way to "manage risks while assessing incoming information bearing on the economic outlook," according to its latest meeting minutes released on Wednesday.

The Fed has decided to maintain the target range for the federal funds rate at 2.25 to 2.5 percent, said the minutes of the Jan. 29-30 policy meeting of the Federal Open Market Committee (FOMC), the monetary policy arm of the Fed system.

"Participants pointed to a variety of considerations that supported a patient approach to monetary policy at this juncture as an appropriate step in managing various risks and uncertainties in the outlook," the minutes said.