China's Yuan to drop against USD this year – Reuters Poll

The key findings of the latest Reuters poll of over 60 foreign exchange strategists on their expectations for Asian currencies in 2018 are found below.

The Yuan is forecast to fall 1.7% against the USD by end-2018.

China's Yuan is forecast to depreciate slightly to 6.60 per dollar in six months and to 6.60 by end-2018.

Ulrich Leuchtmann, Research Head at Commerzbank, noted:" During the recent phase of U.S. dollar weakness, the government has allowed a strong appreciation against the dollar, while the CNY has moved more or less sideways against the currency basket since April."

"The volatility in USD/CNY is ... likely to remain higher in the future. The government is likely to react more sensitively to a CNY devaluation than to an appreciation, in order to prevent a capital flight from flaring up again after it was only stopped by extensive controls on capital movements in 2015 and 2016," Leuchtmann said.