Limited room for renminbi to depreciate further, says expert

The renminbi does not have much room for further depreciation against the US dollar, a leading wealth management official said on Monday.

"We don't see huge room for further yuan depreciation against the US dollar unless there are factors supporting the continuing appreciation of the greenback - for instance, if the US Federal Reserve raises its benchmark interest rate unexpectedly fast, or non-US markets suffer an unexpectedly weak economy. But we haven't seen such signs so far," said Ethan Wang, head of investment strategy of wealth management at Standard Chartered China.

Both the onshore and offshore renminbi strengthened against the US dollar on Monday. At 8:24 pm Beijing time, the USD/CNY spot rate was quoted on Wind at 6.6117, which was - 0.0363 off from the overnight position. The USD/CNH spot rate was quoted at 6.6175, which was - 0.0447 off from the overnight position.