The yuan may endure short-term depreciation pressure as the Federal Reserve continues to hike rates, while China's weak exports, Covid disruptions and real estate downturn also weigh on the currency, Yicai.com reported, citing analysts and strategists from Nomura.

Key quotes

“Nomura maintained its forecast for yuan to weaken to 7.5 against the U.S. dollar by the end of November, rather than forecasting additional weakness as he suspects the People's Bank of China may intervene.”

“Though the State Administration of Foreign Exchange is unlikely to use FX reserves to intervene, state-owned commercial banks may enter the market to support the yuan with their large foreign exchange holdings estimated to total USD629 billion.”

• USD/CNH rebounds from 7.3300 despite an upbeat Caixin Manufacturing PMI