by Xinhua writers Zhang Yi and Wang Jian BEIJING, Nov. 25 (Xinhua) -- The Chinese yuan will not drop significantly amid interest rate cuts, with impacts of declining yields offset by increasing trade surplus and dwindling worry over financial stability. China's move to cut borrowing rates by 0.4 percent, at the backdrop of the ending of the U.S. QE, may make yuan-denominated assets less attractive to international investors who already see an end to the yuan's single-way appreciation. A depreciation trend caused by the narrowing disparity between domestic and overseas interest rates will then spur more sales of yuan products, pressuring the currency to further go down. The scenario, however,...
↧