The offshore yuan appreciated past 7.1 per dollar, finding support after a private survey pointed to a surprise expansion in Chinese factory activity for May. The currency was also lifted after the US Federal Reserve signaled that it could pause its interest rate hikes this month. Still, the yuan remains close to its lowest levels in six months after official data showed that Chinese manufacturing activity contracted further in May, while services activity growth slowed to a four-month low. This reinforced speculations that the People’s Bank of China could lower interest rates again amid an unstable post-pandemic economic recovery. A lack of direct intervention by the country’s central bank to support the yuan also weighed on the currency, even after some major state-owned banks sold dollars in the spot market to keep the yuan from further losses.
Historically, the Chinese Yuan reached an all time high of 8.73 in January of 1994. Chinese Yuan - data, forecasts, historical chart - was last updated on June of 2023.
The Chinese Yuan is expected to trade at 7.20 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 7.47 in 12 months time.