There is little to worry about the Federal Reserve's impact on China's yuan as the exchange rate will be determined by economic fundamentals in the long term, state media reported, barely a day after the Fed's rate hike and policy outlook pummeled the yuan to 8-1/2-year lows.
The Communist Party's official paper, the People's Daily, said in an editorial on Friday that there was "no need to worry too much" over whether the rate hikes would put further depreciation pressure on the yuan and increase capital outflows.
"The days of 'when the United States sneezes, the whole world is cold' have drifted away, liquidity in today's global markets is no longer all in US dollars," the newspaper said.
