The Chinese yuan is expected to trim some of its recent losses against the greenback over the coming year on hopes that trade risks will subside and a deep sell-off in emerging markets will subside, a Reuters poll found.
Key points (Source: Reuters)
The CNY was expected to gain around 1.7 percent to 6.80 per dollar in a year’s time from around 6.92 currently, according to the poll of over 50 foreign exchange strategists.
Sixteen strategists see the yuan weakening to 7 to the dollar or higher at some point over the 12-month period, the highest number of respondents in the Reuters poll predicting that since August 2017.
Nearly half – 18 of 37 common contributors in the latest survey and a September poll – revised forecasts to a weaker yuan, citing expectations for more policy easing from China’s central bank in coming months.
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