USD/CNY: Yuan will remain under pressure – Commerzbank

The Yuan has weakened against the Dollar by over 3% year to date. Economists at Commerzbank analyze USD/CNY outlook.

China-US interest rate differentials will persist in the near term

While the Yuan strengthened in recent weeks towards 7.10 amid a generally weaker Dollar, it will remain under pressure. 

China-US interest rate differentials will persist in the near term, albeit narrower, while China’s economy is still in search of a more stable footing. The PBoC will likely continue to use the daily fixing to guide the Yuan and prevent one-sided weakening.