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Bloomberg
Goldman Sachs Group Inc expects the yuan to weaken past 7 per dollar in the next three months — a level the currency hasn’t breached in more than a decade.
The bank revised its forecasts for the yuan against the dollar because it sees the currency’s decline as a natural offset to higher US tariffs, even if policymakers are reluctant to see it
breach the “psychologically important level of 7.00,†strategists including New York-based Zach Pandl wrote in a note.
Goldman sees the yuan at 7.05, 6.95 and 6.80 in three, six and 12 months, respectively, from 6.95, 6.65 and 6.65. NatWest Markets’ Mansoor Mohi-uddin, a Singapore-based senior macro strategist, also said that the currency could breach 7 if a meeting between President Donald Trump and President Xi Jinping this month fails to bring a trade deal.
People’s Bank of China Governor Yi Gang hinted that there is no line in the sand for the currency, which has fallen 2.6 percent since the end of April to 6.9118 per dollar after a trade war between Beijing and Washington flared up again.