Goldman hikes yuan exchange rate forecasts, cites U.S. trade ties

 Image result for yuan



LONDON (Reuters) - Goldman Sachs has upped its 12-month yuan/dollar exchange rate forecast to 6.20 yuan from 6.45 previously, predicting that trade relations with the United States would limit China’s ability to weaken its currency.
U.S. 100 dollar banknotes and Chinese 100 yuan banknotes are seen in this picture illustration in Beijing, China, January 21, 2016. REUTERS/Jason Lee/Illustration/File Photo
Image result for yuan exchange rate
In a note received on Wednesday, the bank said it had also raised its 3-month yuan forecast to 6.30 yuan from 6.35 CNY= earlier, while changing the 6-month forecast to 6.25 from a previous 6.40.
Goldman Sachs analysts said in a research note that “the renewed focus on trade relations with the US...(and) the desire to facilitate local currency bond inclusion in international benchmarks” would offset slower Chinese growth and authorities’ uncomfortableness with further yuan appreciation.
The yuan is currently trading at 6.28 versus the dollar, having rallied from around 6.5 yuan at the start of 2018 amid rising trade tensions between Washington and Beijing.

Comments

Post a Comment

Popular posts from this blog

How the invention of paper changed the world

Image
The Gutenberg printing press - invented in the 1440s by Johannes Gutenberg, a goldsmith from Mainz in Germany - is widely considered to be one of humanity's defining inventions. Gutenberg figured out how to make large quantities of durable metal type and how to fix that type firmly enough to print hundreds of copies of a page, yet flexibly enough that the type could be reused to print an entirely different page. His famous bibles were objects beautiful enough to rival the calligraphy of the monks. The crisp black Latin script is perfectly composed into two dense blocks of text, occasionally highlighted with a flourish of red ink. Image copyright ISTOCK Actually, you can quibble with Gutenberg's place in history. The movable type press was originally developed in China. Even as Gutenberg was inventing in Germany, Koreans were ditching their entire method of writing to make printing easier, cutting tens of thousands of characters down to only 28. It is also not true
Read more