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Yuan to Slide Further

Yuan to Slide FurtherYuan to Slide Further

The Chinese currency will continue depreciating in the next 12 months, trading at 6.52 to the US dollar by the end of February, according to a poll conducted by Reuters. The yuan could recover to 6.46 in a year from now after weakening by 2% in the previous six months, the poll of 30 currency strategists showed. The estimates are lower than those made last month due to expectations of further easing from the central bank of China. “In comparison to Asian currencies, the Chinese yuan was really strong. Given the economic problems, we see the need for further devaluation of the currency to regain some competitiveness,” Martin Gueth, strategist at Landesbank Baden-Wurttemberg, said.

 

Financialtribune.com