SocGen Boosts Yuan Call as China Counters Depreciation Pressures
- French bank sees countercyclical factor bolstering currency
- Wei Yao’s forecasts on Chinese yuan were among most bearish
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China will be able to counter much of the depreciation pressure weighing on the yuan this year, and the currency is set to drop less than previously expected, according to Societe Generale SA.
The French bank sees the yuan falling to 7.05 per dollar by year-end. While that’s down almost 10 percent from the level around 6.76 as of 2:20 p.m. in Shanghai Wednesday, it’s still appreciably stronger than the previous forecast of 7.20. The median estimate of more than 60 forecasters surveyed by Bloomberg is 6.80 for the end of December.