USD/CNY has gained upward momentum in recent weeks. Nonetheless, economists at MUFG Bank expect the pair to move back lower.

CNY to strengthen in the year ahead

“We still expect CNY to strengthen in the year ahead, albeit with less degree of appreciation against the US Dollar.”

“Steadier and faster growth for China’s economy in the second half of this year should help improve market sentiment.”

“We expect USD/CNY to drop back to 6.8500 by the end of Q2 2023 and 6.6500 by the end of this year.”