“The undervalued levels of the currency, both on a real trade-weighted basis but especially versus the dollar, all point to the possibility for a stronger onshore yuan as a potential offset to tariff reductions,” the analysts wrote.
Goldman Sachs Group Inc. lifted its yuan forecast to 7 per the US dollar over the next 12 months as US-China trade negotiations get underway.
The bank also upgraded its view on the currency to 7.20 and 7.10 per the US dollar for the three and six-month periods, Goldman analysts led by Kamakshya Trivedi wrote in a note on Friday, citing factors including China’s strong exports.
