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The yuan is likely to extend the upside after reaching over two-year highs against the US dollar in recent trades, China’s Economic Information Daily reported, citing economists.

Key quotes

“The yuan could appreciate further after trading at 6.61 to the US dollar on Nov. 9, the highest level since June 2018.”

“China is obtaining both trade and capital surpluses, while the US registered an unprecedented fiscal deficit above 15% of GDP, both of which helped boost the yuan.”

“The yuan’s internationalization and the further opening of the Chinese financial market should push further appreciation and attract more investors and traders into the Chinese financial markets.”

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