China's yuan depreciated slightly to 6.44 against the US dollar in the third week of September, but remained not far from a recent two-and-a-half-month peak of 6.42, as investors awaited the U.S. Federal Reserve's upcoming policy meeting for more clues on tapering. Meanwhile, uncertainty surrounding the health of the world's second-largest economy remains. Industrial production increased the least in 13-months while retail sales growth was the weakest in a year and services activity contracted due to COVID-19 outbreaks in some regions. Also, China will extend tariff exemptions for 81 products imported from the United States by seven months, a gesture to soften the trade war between the two countries after recently President Joe Biden and President Xi Jinping discussed over the phone the need to manage competition between their countries and avoid conflict.
Historically, the Chinese Yuan reached an all time high of 8.73 in January of 1994. Chinese Yuan - data, forecasts, historical chart - was last updated on September of 2021.
The Chinese Yuan is expected to trade at 6.47 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 6.53 in 12 months time.