Strategists at a major Singapore bank forecast a measured appreciation in the Chinese Yuan through 2027, targeting USD/CNY at 6.62 by end-2026 and then 6.46 by end-2027. The call rests partly on a run of stronger People’s Bank of China fixings, which is read as marginally higher policy tolerance for Renminbi strength, even as the expected path remains gradual rather than abrupt.
Currency Resilience and Expected Path
The Yuan has held up even during periods of broader US Dollar gains, and the view assumes USD strength will ease over time, allowing the currency to grind firmer with bouts of consolidation.
Risks to the Yuan’s Trajectory
Risks to the trajectory include another USD rally, weaker domestic growth conditions, or any change in the fixing pattern that signals less support for appreciation.
