SHANGHAI: The yuan held steady against the US dollar on Wednesday, trading near an eight-month high hit in the previous session, underpinned by weakness in the greenback and hopes for an easing of US-China trade tensions.
The spot yuan opened at 7.1652 per dollar and was last trading at 7.1658 as of 0250 GMT, 8 pips lower than the previous late session close, and 0.16% weaker than the midpoint.
“We expect the Chinese yuan to continue its gradual appreciation against the US dollar, potentially reaching 7.1 by year-end and 7.00 by mid-2026, assuming the tariff truce holds and the dollar continues to weaken,” analysts at UBS Global Wealth Management’s Chief Investment Office said in a note.
“The main risk to our outlook is a breakdown in trade negotiations,” they said, adding that broad dollar weakness should help limit down in the yuan.
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