Morgan Stanley Sees Yuan Rally Slowing, Diverging From Bulls

Morgan Stanley sees room for the yuan to climb further, but disagrees with more bullish views that the currency is significantly undervalued.

The Chinese yuan may advance to 6.70 against the dollar in the near term, supported by stronger growth and improving risk sentiment, according to the bank’s latest forecasts. It also raised its year-end expectations to 6.75 from 7 previously, bringing it more in line with the Bloomberg consensus.