Dollar Will Stay Weak If China Has Its Way, Morgan Stanley Says
- Weak dollar supports global growth, Chinese strategy: Redeker
- Speculation mounting PBOC will move to curb yuan’s advance
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As China’s currency trades near to its highest level against the greenback since the 2015 devaluation, don’t expect the government to engineer a reversal any time soon, according to Morgan Stanley.
That’s because Chinese policy makers are now embracing a strong yuan as it helps boost consumption and draw inflows, Hans Redeker, London-based global head of foreign-exchange strategy at the U.S. bank, said Tuesday. Thanks to China’s position as the world’s largest reserves holder and trade partner, that means the dollar’s weakness will persist.