The Chinese yuan appreciated slightly despite a stronger US dollar in June. Economists at MUFG Bank expect the USD/CNY to move downward anf forecast the pair at 6.60 by year-end.

USD/CNY to be at 6.65 by the end of Q3

“We maintain an appreciation bias towards CNY against the US dollar for July and the rest of this year, due to further recovery of the economy helped by potentially more easing policies.”

“The potential improving sentiment could help attract inflows and push CNY stronger, we see USD/CNY to be 6.65 by the end of Q3, 6.60 by the end of Q4, 6.57 by the end of Q1 2023, and 6.54 by the end of Q2 2023.”