SHANGHAI, Oct 19 (Reuters) - China's yuan is not entering a depreciating path but pressure will persist in the short term amidst dollar strength, the overseas edition of the People's Daily quoted experts as saying on Wednesday.

The Communist Party's mouthpiece said the Chinese currency will remain basically stable in the mid- to long-term with two-way volatility, and a depreciation trend is unlikely to happen.

It added that the yuan is supported by signs that China's economy is stabilising. The yuan would also be bolstered by overseas investment following its inclusion in the currency basket determining the value of the International Monetary Fund's synthetic reserve currency Special Drawing Rights.

Upbeat U.S. economic data has raised expectations of an interest rate hike by the U.S. Federal Reserve, piling pressure on the yuan. The global dollar index, a gauge of the dollar's strength has gained 3.5 percent in the last two months.

The spot yuan rate against the greenback has fallen 1.0 percent so far this month.

(Reporting By Winni Zhou and Nathaniel Taplin; Editing by Simon Cameron-Moore)