FXStreet reports that economists at OCBC Bank expect the Chinese yuan to remain supported in the next year.

“The strong RMB was mainly attributable to three factors including China’s first in first out recovery, the widening current account surplus and favorable yield differential between China and US. We expect those factors will continue to underpin CNY in 2021.” 

“Given China’s increasing focus on independence of monetary policy, it will gradually loosen its tight control on currency volatility. This means that China will have higher tolerance for the possible overshoot of CNY in the near-term. For the USD/CNY, we think it may test 6.30 in 2021.”