Even after the US exits QE3 and China's foreign capital inflows ebb, China may still be able to attract foreign direct investment due to its solid economic fundamentals, and the yuan's appreciation pressure could be alleviated, Xu added.

And if foreign capital exits emerging economies to pursue better returns in the US dollar market, Chinese capital will also get a chance to enter these markets, Xu added.

Yellen's nomination comes as the federal government is on a partial shutdown for the first time in 17 years. The news of the nomination came just hours after Obama called for ending the government shutdown and raising the debt ceiling to avoid a possible default next week.

"If there's a way to solve this, it has to include reopening the government and saying America's not going to default, it's going to pay our bills," said Obama, adding he is willing to negotiate with the Republicans.

All the analysts interviewed dismissed the possibility of a default, saying the US government has plenty of ways to avoid that scenario. The debt ceiling has been raised 79 times since the 1960s and no single default has happened before.

Yellen would also be the first woman to run the Fed. She has served as president of the Federal Reserve Bank of San Francisco, White House adviser and a professor at the University of California, Berkeley.