Currency stability seen as key task

China's foreign exchange regulator will likely focus on keeping the country's currency stable this year while allowing greater flexibility in the exchange rate, economists said on Monday, with some believing there may still be potential for the yuan's further appreciation against the US dollar.

Yuan bulls enjoyed a cheerful year in 2017 as the currency strengthened by more than 6.3 percent against the US dollar, its greatest annual gain in nine years.

A string of factors including resilient domestic growth, tighter monetary conditions and stricter regulatory scrutiny of cross-border capital flows supported the strengthening of the Chinese currency.