FXStreet reports that economists at ING expect the Chinese yuan to depreciate in the coming months.

“After revising down our stronger yuan view last month, we look at the economic situation, including the possible RRR cut in 4Q21 and the policy directions set by President Xi on 30 July, and we conclude a change of exchange rate direction is more likely. We have changed the yuan trend from appreciation to mild depreciation until mid-2022.”

“The RRR cut in China contrasts with the Fed discussion of tapering and rising policy interest rates. This will persist for the rest of this year and even into the first half of next year.”