Goldman Sachs said on Monday that the yuan is poised for a steady climb toward 7 per US dollar over the next six months, citing the People’s Bank of China’s deliberate policy stance to guide the currency higher.
The investment bank noted that the PBOC’s daily midpoint fixings have shown a consistent strengthening bias since May, reflecting a controlled appreciation trend regardless of short-term dollar movements.
This suggests proactive foreign exchange management by Chinese authorities amid market expectations of a weaker dollar in the medium term.
Goldman expects the onshore yuan to reach 7.0 against the greenback within six months, supported by potential Federal Reserve rate cuts and softer US economic data, which could further depress the dollar.
The bank also highlighted that declining USD/CNY volatility signals reduced fears of a sharp Sino-US escalation and underscores Beijing’s preference for stable currency movements.
The yuan’s midpoint was set at 7.1405 per dollar on Monday, slightly weaker than the previous fix.
STAFF REPORTER
