The Chinese Yuan held flat at 6.38565 against the US Dollar on Friday after the onshore rate was set at 6.3856. Sentiment for the Yuan remained subdued as a key US inflation report showed the US CPI jumped to 5% in May, the highest since August 2008. Locally, the PBoC is trying to normalize policy by reducing stimulus and contain debt as the economy rebounds from the pandemic after Wednesday’s data showed China's May factory gate prices rose at their fastest annual pace in over 12 years. Among other recent data, the value of new yuan loans in China went up to CNY 1,500 billion in May from CNY 1,470 billion in April, while M2 money supply grew 8.3% yoy, and outstanding yuan loans grew an annual 12.2%, below 12.3% in April.
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 June of 2021.
The Chinese Yuan is expected to trade at 6.42 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 6.50 in 12 months time.