China's foreign exchange regulator says the country's policy of reforming its currency, doesn't equate to exchange rate appreciation. And market players should get used to two-way yuan movements.

The State Administration of Foreign Exchange adds that investors still firmly believe that the yuan will rise, and that it will help drive capital to China over the rest of the year. Chinese officials have repeatedly tried to talk down expectations of a stronger yuan. Higher interest rates compared with the United States, export competitiveness, and foreign direct investment will all attract capital to China.

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