Yuan in Longest Losing Streak Since February as Forecasts Cut
- ABN Amro, Credit Agricole weaken estimates after Brexit vote
- China is using opportunity to engineer currency decline: RBC
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The yuan headed for its longest run of declines since February as lenders including ABN Amro Bank NV weakened their forecasts for the Chinese currency, citing additional pressure from Britain’s vote to leave the European Union.
The People’s Bank of China will allow a weaker yuan against the greenback because it will focus on keeping its exchange rate stable versus a trade-weighted basket, ABN Amro strategist Roy Teo wrote in a note Tuesday. He downgraded the yuan’s year-end estimate to 6.8 a dollar from 6.7 previously. Goldman Sachs Group Inc. cut its 12-month estimate for the yuan’s fixing to 7 from 6.8, while Credit Agricole CIB revised its prediction of an annual gain in the exchange rate to a decline.