Swiss company Pictet Asset Management released its forecast of the Chinese yuan rising 5.5% against the dollar this year, as China’s economy grew stronger and the United States pushed back on rate hikes.
Sabrina Jacobs, customer portfolio manager at the company’s emerging markets fixed income fund, said the Chinese currency could rise to 6.5 against the dollar, boosted by the Asian giant’s strong current balance of transactions. The average forecast of analysts polled by Bloomberg was 6.7 yuan per dollar.
Jacobs noted that “in its forecast, the dollar tends to decline,” with the Bloomberg Immediate Dollar Index falling more than 10% since hitting an all-time high in September.
The director, who works from London, added in an interview last week that the fund would buy more yuan if it slumped further towards 7 against the US currency.
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