While the yuan's losses last month marked the third time it has approached the 7 per dollar rate, it has not breached that point since the global financial crisis. The yuan is now forecast to gain about 1.5% to 6.80 per dollar in a year. "China fixed the USD/CNY central parity just below 6.90, and its officials warned of huge losses for those who sought to speculate against the Chinese yuan. There is less fear that the Chinese yuan will depreciate past 7 against the USD, for now," said Philip Wee, FX strategist at DBS. Of 31 currency strategists in the June poll who answered an additional question, about half said the yuan will not breach the 7 per dollar rate any time soon.

Source: The Star June 06, 2019 03:11 UTC