Yuan has no basis for long-term depreciation, says Chinese state media

China's yuan has no basis for long-term depreciation, as the country's strong exports should offset a buoyant dollar and hawkish Federal Reserve tightening, state media said on Wednesday citing market analysts.
 

The Chinese currency has weakened to two-year lows against the dollar this week, reacting to expectations of further aggressive interest rate hikes from the Fed and a domestic economic slowdown due to anti-COVID controls.

Trading at 6.8532 to the dollar at 0225 GMT, the yuan has fallen more than 1.6 per cent against the greenback since the People's Bank of China (PBOC) surprised the market by lowering two key interest rates