PBoC-backed media says the Chinese yuan is on solid footing and will stay balanced

In Chinese financial media, the PBOC-affiliated Financial News, a report saying:

• says that the yuan is on solid footing and will stay balanced
• unnamed experts are cited for the opinion

Further

• said the possibility of the dollar weakening is increasing in line with the odds of the Fed cutting rates in December
• yuan exchange rate will most likely continue to fluctuate in both directions under the influence of market forces
• With the support of continued improvement in China’s economic fundamentals, there is a solid foundation for the yuan to remain stable

The context for all this is the potential tariff hikes from the U.S. have raised speculation that China may devalue the currency to help exporters. I posted on this a little earlier:

• If China aggressively intervenes in the yuan, it “raises the risk of a tariff cascade”

USD/CNY update:

This article was written by Eamonn Sheridan at www.forexlive.com.