SHANGHAI/SINGAPORE, May 24 (Reuters) - The yuan is unlikely to experience sharp volatility as China's economic fundamentals, balance of payments and foreign exchange reserves are generally stable, a state-run newspaper said on Wednesday.
China's foreign exchange regulator also "has the experience and tools to deal with abnormal fluctuations in the yuan," an article in the Economic Daily said.
The commentary comes at a time when the yuan has been under renewed downside pressure. It weakened past the psychologically important 7 per dollar level last week to hit its lowest point in more than five months.
Commentaries like this that run in state-run media are generally interpreted as efforts by authorities to stabilise the foreign exchange market, currency traders say.
The People's Bank of China also said last Friday that it would resolutely curb large fluctuations in the exchange rate and would look at encouraging more discipline in how dollar deposits are managed.
(Reporting by Winni Zhou and Tom Westbrook; Editing by Edwina Gibbs)
