Yuan Forecasters Caught Out by Tumble See No Reason to Fret
- Analysts expect less than 0.5 percent drop by end of 2016
- PBOC will step in to calm markets if needed, Westpac says
This article is for subscribers only.
Forecasters racing to catch up with the yuan’s slide are reluctant to badge the currency a one-way trade.
The speed of the yuan’s recent tumble will slow, and policy makers will step in to overwhelm speculators if bearish bets increase, according to a Bloomberg survey of 21 foreign-exchange traders and analysts. The currency will weaken less than half a percent against the dollar to 6.8 through the rest of the year and hold its ground versus an index of trading partners into 2017, the poll results show.