US Dollar Set to Weaken Against Chinese Yuan Due to Ongoing Trade Negotiations, Goldman Sachs Says

Goldman Sachs analysts predict the Chinese yuan (CNY) will strengthen against the US dollar over the next 12 months. Forecasting the USD/CNY rate to drop from 7.2 to 7.0.

They attribute this potential rise to the yuan being undervalued, both on a real trade-weighted basis and against the dollar. The forecast was revised from an earlier prediction of 7.35. The yuan has already gained 1.24% against the USD in the last month.

Analysts at BNP Paribas agree, suggesting that stronger Chinese economic growth could further boost the yuan’s value if the dollar continues to weaken.

Clever Robot News Desk 14^th May 2025