Goldman Sachs Raises Yuan Outlook Amid US-China Trade Progress

Published 1 days agoGS

Goldman Sachs Raises Yuan Outlook Amid US-China Trade Progress

Goldman Sachs Group Inc. has revised its forecast for the Chinese yuan, predicting it will reach 7 per dollar within three months. This optimistic update from the investment giant reflects the positive momentum in ongoing US-China trade negotiations, easing previous concerns about the yuan's depreciation.

The adjustment from the earlier forecast of 7.4 to 7 is largely driven by recent encouraging signs in trade talks between the United States and China. This shift has helped alleviate some of the pressures that were previously contributing to a weaker yuan. Goldman Sachs cites progress in these discussions as a key factor in their updated outlook on the currency.

Despite the looming possibility of further US tariffs, Goldman Sachs maintains that China's policies have favored a stronger yuan. The People's Bank of China has been setting a stable daily reference rate, thereby supporting the currency’s strength. Additionally, a rally in Chinese tech stocks has bolstered the yuan's resilience in the market, as noted by coverage from thestandard.com.hk.

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