Bloomberg (gated) reported on comments on the yuan via Standard Chartered. In brief:
- The yuan’s recent surge to an eight-month high may not last, as analysts warn of persistent economic headwinds and a potentially stronger U.S. dollar.
- While the currency has broken out of a narrow trading range, concerns remain over soft domestic demand and the impact of higher U.S. tariffs—even if a trade deal materialises.
- Standard Chartered’s Becky Liu expects the yuan to weaken by year-end, pointing to declining support from GDP growth, exports, and the current account.
- Ryan Lam of Shanghai Commercial Bank shares that view, suggesting the recent optimism around economic reforms is fading and predicting the yuan could fall back to 7.20 per dollar, given ongoing U.S. economic strength.
This article was written by Eamonn Sheridan at investinglive.com.
