Will the Chinese Yuan weaken from 7 to 8?


In our latest DBS Macro Insights Video, DBS FX strategist Philip Wee presents a model to estimate the impact of US tariffs on the Chinese yuan.
Group Research26 Aug 2019


    Prolonged trade tensions are set to keep the Chinese yuan weak past its psychological 7 level against the USD. Labelling China a currency manipulator and the coming 10% US tariff on the remaining USD300bn of Chinese goods have brought the yuan a step closer to the 8 level. Much depends on whether US President Trump keeps increasing tariffs into next year’s US presidential elections.

     



    Philip Wee

    FX Strategist - G3 & Asia
    philipwee@dbs.com
     
     

    Taimur Baig, Ph.D.

    Chief Economist - G3 & Asia
    taimurbaig@dbs.com



    The information set out in this website (“Information”) is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of or located in any locality, state, country, or other jurisdiction (including but not limited to citizens or residents of the United States of America) where such distribution, publication, availability or use would be contrary to law or regulation.
    This Information is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction (including but not limited to the United States of America) where such an offer or solicitation would be contrary to law or regulation.

    This Information is published for general circulation only and does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person. Visitors accessing this website should always seek advice from an independent financial adviser regarding the suitability of the Information referred to herein (taking into account the specific investment objectives, financial situation and/or particular needs of each person in receipt of the Information) before making any investment and/or any purchase in reliance of the Information.
    Please refer to the actual research publications for important disclaimers and disclosures, where applicable.



    DBS Bank Ltd., 12 Marina Blvd, Marina Bay Financial Center Tower 3, Singapore 018982. Tel: 65-6878-8888. Company Registration No. 196800306E.

    PT Bank DBS Indonesia, DBS Bank Tower, 33rd floor, Ciputra World 1, Jalan Prof. Dr. Satrio Kav 3-5, Jakarta, 12940, Indonesia. Tel: 62-21-2988-4000. Company Registration No. 09.03.1.64.96422.