Yuan Faces Reality Check After China Reopening-Driven Rally
- UBS strategists see yuan ending the year at 7 per dollar
- Export growth may become a drag for economy in 2023: Nomura
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The yuan rally spurred by China’s reopening optimism is set to face a reality check as doubts grow on whether any economic rebound will match the currency’s rapid gains.
The yuan wiped out nearly a third of its yearly loss last month before surging past the key 7 per dollar level on Monday. Its appreciation beyond 6.95 would suggest the advance is likely overdone, according to Societe Generale AG, while UBS Group AG strategists expect the yuan to end the year at 7 per dollar and weaken in early 2023 with large fluctuations.