Yuan may rise more on weaker US dollar

The yuan may rise further this year due to a weakening US dollar and on the back of solid fundamentals of the Chinese economy, analysts said.

Last week, the Chinese currency reached a two-year high.

Factors like the expectation of a stabilizing Chinese economy, the continuous regulatory clampdown on risky leverage to curb risks, and the rising likelihood of interest rate hikes by the Chinese central bank would continue to support the exchange rate of the yuan against the dollar, according to Zhu Junchun, a foreign exchange analyst at Lianxun Securities.