BEIJING Oct 18 The accelerated yuan appreciation
of recent weeks will not last long because China's trade surplus
will soon peak, an official state newspaper reported on Monday.
An article in the overseas edition of the People's Daily said
there had not been sufficient improvement in the economy at home
or abroad to justify a speedy rise in the exchange rate.
China freed the yuan from a 23-month peg to the dollar in
June and has let it gain about 2.8 percent against the dollar
since then, with most of its rise coming after August.
The article cited Wang Jun, a researcher at the Chinese
Academy of Social Sciences, as saying that China should not and
would not bow to foreign pressure.
"If the yuan rises quickly under joint pressure from the
United States and some other nations, that will mean China is
manipulating its currency, won't it?" the report cited Wang as
Wang's phrase appeared to be a reference to a decision that
the U.S. Treasury Department had been due to make last week about
whether to classify China as a currency manipulator. The United
States opted to delay that decision until late November after
U.S. congressional midterm elections and a G20 summit are out of
the way. [ID:nnN15220633]
The People's Daily said that pressure on the yuan to rise
would soon decline because China's trade surplus was topping out.
It dipped to $16.9 billion in September, a five-month low.
(Reporting by Langi Chiang and Simon Rabinovitch; Editing by