Yuan to remain largely stable despite hurdles

Despite recent swings, the Chinese yuan is expected to remain largely stable with manageable depreciation pressure this year, thanks to sound economic fundamentals and export resilience, experts said on Thursday.

They made the remarks amid a strengthening US dollar following tightening by the US Federal Reserve that put pressure on the yuan, sending the central parity rate of the yuan against the dollar down 102 basis points to 6.4098 on Thursday, the weakest level since mid-November.

"The yuan is expected to maintain overall stability with moderate depreciation and come in at around 6.45 against the dollar at the end of the year," said Hu Yifan, regional chief investment officer and head of macroeconomics for Asia-Pacific with UBS Global Wealth Management, one of the world's largest wealth managers.