Chinese yuan seen 20% undervalued as Goldman Sachs raises strengthening forecasts
Updated
Updated · Bloomberg · May 11
Chinese yuan seen 20% undervalued as Goldman Sachs raises strengthening forecasts
7 articles · Updated · Bloomberg · May 11
Strategists led by Kamakshya Trivedi now forecast 6.80 in three months, 6.70 in six months and 6.50 in a year, from 6.85, 6.80 and 6.70.
The yuan is trading around 6.80, meaning Goldman expects little near-term change but further appreciation against the US dollar over the next 12 months.
Goldman said the currency remains below levels justified by China’s export strength and external surplus, arguing those fundamentals support a higher yuan valuation.
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