The Chinese yuan hit an over 8-year low Monday, lowest since March 2008 and is steadily approaching the 7.00 mark in the near-term. Moreover, depreciation pressure is likely to continue through the rest of next year as well, following the People’s Bank of China’s (PBoC) continuous fixing of the currency. However, it is likely to remain relatively stable against a basket of currencies in the weeks ahead.

The People’s Bank of China (PBoC) raised USD/CNY fixing by 104 pips to 6.8796 last Friday amid a broadly strengthening USD. The central bank set the USD/CNY reference rate at 6.8985 on Monday, 0.27 percent weaker than 6.8796 last Friday, injecting CNY185 billion liquidity in reverse repos, including CNY15 billion in 28-day repos and CNY60 billion in 14-day repos.

China's President Xi said that the country would open up even further as the authorities plan to give greater access to foreign investment. The APEC must reject attempts to slow down cooperation between nations. China plans to import USD8.0 trillion in goods over the next five years amid government planning to raise supply side reforms in public entities.

In addition, the National Bureau of Statistics (NBS) said Friday that China’s new home prices in the first-tier cities increased by just 0.5 percent in October from a month ago after rising 3.3 percent m/min September. It could be attributed to a recent round of property tightening measures.

Meanwhile, USD/CNY is trading 0.15 percent up at 6.90, making an intraday high at 6.8982 and low at 6.8865 levels.