January 02, 2025 at 11:57PM
RBC projects the USD/CNY exchange rate to rise to 7.55 by year-end.
Analysts at the bank cite:
weak economic prospects for China, the economy remains burdened by the real estate slump and sluggish consumer spending, with no clear resolution in sight for these issues
the likelihood of another US-China trade war following Trump’s win
yield gap between US and Chinese 10-year bonds will widen, as the People’s Bank of China is likely to adopt looser monetary policies, while the Federal Reserve may slow its rate cuts
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Shanghai Composite update, a soft start to 2025:
This article was written by Eamonn Sheridan at www.forexlive.com.
RBC forecasts a much weaker yuan in 2025 project USD/CNY to 7.55 by year end