The Chinese Yuan added 0.0075 points or 0.12% to 6.42099 against the US Dollar on Thursday after the onshore rate was set at 6.4391. Investors remained optimistic as most Asian markets remained closed for the Lunar New Year, after local data revealed a continued economic recovery, with factory gate prices rising yoy in January for the first time in 12-months, while the consumer price index unexpectedly dropped by 0.3% yoy. Earlier in the week, the PBoC pledged to keep monetary policy flexible and precise, prioritising stability and avoiding sharp changes in its decisions according a quarterly report published by the bank. Meantime in the US, fresh data showed that the inflation rate rose less than expected, easing concerns that it would pick up too fast with the new fiscal stimulus but also raising questions about a slow pace of recovery.
Historically, the Chinese Yuan reached an all time high of 8.73 in January of 1994. Chinese Yuan - data, forecasts, historical chart - was last updated on February of 2021.
The Chinese Yuan is expected to trade at 6.45 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 6.52 in 12 months time.