In a reversal of the trend in recent months, the central parity rate of the yuan strengthened 203 basis points to 6.6669 against the US dollar on Friday, after rising for three consecutive days.

However, some forecast the yuan is likely to decline to 6.8 yuan against the dollar or lower in the future.

It is not easy to predict the yuan's future exchange rate, given that multiple factors influence it. But in the context of a strong US dollar, the yuan does face external pressure to devalue.