The offshore yuan edged lower to around 6.71 per dollar, remaining in a sideways trading range for the past two weeks despite a slew of upbeat economic data, signaling China’s economic recovery amid an easing Covid situation. China’s manufacturing and service sectors expanded in June for the first time in four months as authorities gradually lifted virus restrictions, reviving output and consumption. Meanwhile, investors remained cautious about China’s adherence to its strict zero Covid policy, amid fears that the country is still susceptible to lockdowns. Moreover, People’s Bank of China Governor Yi Gang said the country's policy stance would continue to be accommodative to support the economic recovery. This contrasted sharply with the hawkish bias of other major central banks, raising fears of capital outflows and currency weakness.
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 July of 2022.
The Chinese Yuan is expected to trade at 6.79 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 6.89 in 12 months time.