Banks Slash Yuan Forecast as Currency Heads for Record Loss
- Onshore yuan set for biggest monthly drop since 1994
- Currency to fall a further 1% in next three months: survey
Workers in personal protective equipment stand next to barriers during a lockdown due to Covid-19 in Shanghai, China, on April 25.
Source: Bloomberg
Seven banks have slashed their yuan forecasts with the currency headed for its biggest monthly decline since China unified its exchange market in 1994.
Analysts from Credit Agricole CIB, to HSBC Bank Plc have lowered their estimates for the yuan recently as the worsening Covid outbreak and spreading lockdowns lead to declines of more than 4% this month. Some of the bearish projections were swiftly breached Thursday as the yen’s slide added to the depreciation pressure. Separately, a survey of 11 traders and analysts by Bloomberg show the yuan is expected to drop to 6.7 per dollar in three months, about 1% weaker than current levels.