FXStreet reports that economists at ING expect the Chinese yuan to suffer in the coming weeks.

“We have revised our USD/CNY forecasts to 6.55 and 6.45 for the end of 3Q21 and 4Q21, respectively. The pair ranged between 6.46 and 6.48 since late June. But this is likely to change as we expect a softening of the yuan in 3Q21 that will stem from more hawkish talk by the Fed but a ‘balanced’ tone by PBoC, which means no hike for this year.”

“Market sentiment on the yuan could change from appreciation to depreciation against the dollar.”