RMB: Weakening on USD strength - ANZ

Research Team at ANZ sees further depreciation pressure on the CNY against the USD in 2017, continuing this year’s trend.

Key Quotes

“This follows a further 1.7% loss in November, taking the CNY to its weakest level in eight years.”

“This essentially reflects USD strength, particularly after Trump’s election victory. The RMB (CFETS) index has been broadly stable since August.”

“We expect further USD strength on Trump’s economic policies and growing price pressure in the US. Uncertainty remains as to whether the new administration will label China a currency manipulator.”