Market Views: How low can the Chinese yuan sink?
How long will the renminbi stay on the weak side as the China-US rate paths diverge? Has the currency been undervalued? Fund managers have different views.
The Chinese yuan has been on a weakening path over the past three months, testing its weak point against the US dollar at 7.3 back in 2022.
This is a result of a sluggish macro recovery in China and widening interest rate differentials with the US, pushing the yuan to 7.18 per dollar. The sluggish growth prompted the People's Bank of China (PBOC) to cut the reverse repo rate by 10 basis points to 1.9% on June 13.
This was followed by two more cuts on key lending rates on June 19…
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