USD/CNY to fall further and end the year at 6.90 - ANZ

Khoon Goh, Head of Asia Research at ANZ, notes that the  CNY reached the weakest level against the USD since December 2008 yesterday and this is predominantly driven by dollar strength, as the RMB Index has remained within a stable range.

Key Quotes

“While the authorities may act to limit the volatility of the moves, it is unlikely that they will defend any particular level. Uncertainty over whether US President-elect Trump will label China a currency manipulator is also weighing on the yuan.”

“We see scope for further dollar strength, and are downgrading our CNY forecasts. We now forecast USD/CNY to end the year at 6.90 and 7.10 by the end of 2017.”