Chinese state-owned lender Bank of Communications International’s Head of Research, Hong Hao, said that the USD/CNY is likely to rise above the level of seven within three months, and that the stock markets in mainland China and Hong Kong are gradually pricing in this scenario, as cited by the South China Morning Post (SCMP).
Hong noted: “The three-month tenure estimate is basically based on the positions we can see built by foreign-exchange traders for now. A weakened valuation of the yuan is decided by the recent tough trade environment China is facing.”
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