Experts see steady foreign exchange in 2H on recovery outlook for China

BEIJING: China’s foreign-exchange (forex) market is more capable of maintaining a steady performance in the second half of the year than in the past as a series of supportive policies are set to help economic recovery regain momentum, experts and officials say.

Forex market stability has come under the spotlight as the People’s Bank of China (PBoC), the country’s central bank, cut benchmark interest rates last week, sparking discussions on whether easing interest rates will widen the US-China interest rate differential and intensify depreciation pressure on the yuan.