U.S. Dollar Could Continue Slowly Weakening Versus Yuan
Dow Jones
Aug 26
0902 GMT - The U.S. dollar could weaken further against the Chinese yuan over the coming months, ING's Chris Turner says in a note. The dollar has weakened sharply versus the yuan since the middle of last week. However, the pace of depreciation could slow going forward, Turner says. The Chinese central bank could be displeased over the pace of renminbi gains recently, he says. In addition, the U.S. announcement about possible sanctions on Chinese entities with ties to Iran could affect the yuan's strength, he says. "Our base case assumes a gently offered dollar environment and dollar/yuan edging lower towards 6.70 over the coming months." The dollar is last at 6.7202 yuan, having traded just above 6.74 at the start of last week, LSEG data show.
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