A Yuan Bear Upends Forecast as Handelsbanken Now Sees Stability
- Swedish bank cuts end-2018 forecast from 7.9 per dollar to 6.4
- Earlier estimate was influenced by Trump election fallout
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Economists have had a dramatic change of heart over the yuan since the start of the year. Back then, the continuing depreciation of China’s currency was viewed as a nailed-on certainty.
Now, amid growing demand that has seen it gain 3.9 percent versus the dollar in the past month, the mood is more upbeat. There’s a growing feeling that the yuan is likely to remain stable for the next couple of years -- the median of analysts’ end-2018 forecasts is 6.8, and for end-2019 it is 6.7.