Chinese yuan to regain some ground if trade tensions ease: poll

© Reuters. FILE PHOTO: Illustration photo of a China yuan note

By Vivek Mishra

BENGALURU (Reuters) – China’s yuan will regain some of its recent sharp losses against the dollar and appreciate over the next year, but only if trade tensions between the Washington and Beijing subside, a Reuters poll found on Thursday.

The yuan has weakened almost 5 percent so far this year and hit a 14-month low last week, primarily driven by new tariff threats from the U.S. and retaliatory warnings from Chinese authorities.

Also, by consistently lowering the mid-point reference rate, the People’s Bank of China (PBoC) has allowed the currency to weaken substantially, adding to anxiety in global financial markets.