THE depreciation pressure on the Chinese yuan against the U.S. dollar is temporary, domestic media said yesterday, noting that its value against major trading partner currencies is stable.

The remarks made by the Economic Daily follow several other similar comments by authorities in recent months and come at a time when the yuan has been facing persistent weakness against the U.S. currency.

The yuan is down more than 5% on the greenback year-to-date and is one of the worst performing Asian currencies in 2023. But against a basket of key currencies, the yuan has only lost 0.15% in the same period to 98.52 yesterday, according to calculation based on official data.

Widening yield differentials with other major economies, particularly the United States, have piled downward pressure on the yuan against the dollar.

“The yuan exchange rate still depends on economic fundamentals in the long run,” the newspaper said.

“Financial regulators will take action when needed, resolutely correct unilateral and pro-cyclical behaviors, deal with activities that disrupts market orders and prevent the exchange rate overshooting risks.” (SD-Agencies)