"Domestically in China, there's a bit of a slowdown, somewhat of a monetary easing ... [but] the American economy is doing well and there is a tightening bias in America so you'd expect to see this divergent monetary condition reflected in a somewhat weaker exchange rate in China," Daniel explains.
Daniel's comments came on the back of the IMF's annual review of the Chinese economy.
China's economy continues to perform strongly, the IMF said, with growth expected at 6.6 percent this year — slightly slower than last year's 6.9 percent.
The growth estimate was unchanged from the IMF's last forecast made in May. It had raised its estimate for China's 2018 growth in January after the economy unexpectedly accelerated last year.
While the IMF praised China's progress on reducing financial sector risks and in further opening its economy, it said credit growth was still unsustainably high as some aspects of the country's rebalancing had slowed.
"China is at an historic juncture. After decades of high-speed growth, the authorities are now focusing on high-quality growth," the report said.
The IMF added that China's headline inflation is expected to rise gradually to around 2.5 percent, while producer price inflation would moderate.
The U.S. is also closely watching the currency of its top trading partner.
On Thursday, Treasury Secretary Steven Mnuchin told CNBC he's "closely monitoring" the weakening in the Chinese currency.
— CNBC's Berkeley Lovelace Jr. and Reuters contributed to this report.