The Chinese yuan on Tuesday ebbed and flowed against the world's reserve currency in the aftermath of re-opened markets in the Asian nation, Reuters reports.
Following observation of the Chinese Lunar New Year, markets re-opened on Friday and trading has slowly picked up. As has the trajectory of the yuan, which follows the guidance signaled by the People's Bank of China. Some traders told the news source that supply and demand are balanced in the domestic market.
Some economists said the yuan's value will progressively rise as the year proceeds, The Wall Street Journal reports. China last year took on increased capital inflows after the pace slowed down in 2012.
"The free movement of capital is much more likely to result in Chinese capital outflows exceeding inflows, pushing the yuan down and domestic interest rates up," states a report penned by Diana Choyleva of analysis firm Lombard Street Research in London, according to The Wall Street Journal.
Confidence is climbing in China regarding exports and trade surplus data, both of which are likely to benefit the value of the yuan, according to The Wall Street Journal.
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