Chinese Yuan: Constructive appreciation bias into 2027 – OCBC

OCBC strategists Sim Moh Siong and Christopher Wong maintain a constructive outlook on the Chinese Yuan, projecting USD/CNY at 6.62 by end-2026 and 6.46 by end-2027. Stronger PBoC fixings signal greater policy tolerance for Renminbi (RMB) strength, while resilience despite broader US Dollar (USD) gains and expectations of easing USD strength support a measured appreciation trajectory, albeit with risks from renewed USD rallies or softer domestic growth.