Iris Pang, Economist at ING believes that USD/CNY will depreciate when trade war tension escalates, and crossing of 7.0 mark looks increasingly likely for the pair.
Key Quotes
“The central bank is more likely to be managing market sentiment by making sure the exchange rate doesn’t surprise the market. The scale of interventions will become smaller as the exchange rate approaches 7.0 so that foreign exchange reserves only fall mildly.”
“For now, we maintain our forecast at 7.0 by the end of this year.”
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