News

Chinese Yuan May Reach 7.3/dollar By Year End, Says CLSA Chief Economist

The trade tensions between China and the United States continue weakening the Chinese Yuan against dollar. This is according to the CLSA Chief Economist Eric Fishwick. As per Eric’s predictions, Yuan may reach 7.3/dollar by the year end. But, on Tuesday morning Yuan traded 7.1144 against US dollar.

Fishwick exclaimed CNBC’s “Street Signs” on Monday saying,

“Looking at how the currency trades, it is very clearly demonstrated that it is being used as a way to offset the effects of tariffs. So, the yuan is allowed to weaken whenever the U.S. ratchets the tension higher.” 

He further added to it,

“I think that the forces that are pushing the Yuan lower are still in place.”

The investors, economists and other market watchers are seeing Yuan as one of the tools that China can use to respond back to the rising U.S. tariffs. China’s yuan, also known as renminbi can make China’s exports much cheaper on international markets.

With the start of 2020, the Yuan can get modestly stronger, according to Fishwick. He added saying that,

“Looking into next year, for the first time in a long time, we’re able to talk about the prospects for the dollar weakening again”.

The American economy is slowing down and there are chances that it may experience a recession. Fishwick also expects that U.S. Federal Reserve may cut interest rates in the next year.

“Also, the U.S. looks more and more like a conventional late-cycle economy. I’ve brought my forecast down for the U.S. in 2020.” 

Fishwick also expects that four rate cuts next year from U.S. central bank.

“As the market focuses on those prospects for rate cuts, that’s the point at which I would expect the dollar to start to depreciate.”

What is your prediction about the Chinese Yuan? Share your thoughts on our Twitter and Facebook pages.

Tags
Show More

Qadir AK

Qadir Ak - Co-founder of Coinpedia Blog - His interest as crypto Author, Editor, Speaker at cryptocurrency conference has made him known as passionate blogger and startup in Asia.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

one + eleven =

Back to top button
Close
whatsapp
zz