Global banks raise yuan forecasts, fuelled by China's export strength and stable US ties

SHANGHAI, May 18 (Reuters) - Some planetary concern houses revised up their yuan forecasts, fuelled by China's export competitiveness and dependable commercialized ‌relations with the U.S., the world's biggest economy.

The Chinese currency has ‌been grinding higher this year, rising astir 3% against the dollar truthful acold to 6.8040 ​per dollar connected Monday, and is up astir 2.6% versus its large trading partners.

Here are immoderate details:

• HSBC bets connected a cardinal lawsuit for humble further yuan appreciation and has raised its forecasts to 6.65 per dollar by ‌year-end from 6.75 previously.

• On ⁠top of highly competitory exports, "RMB internationalisation, semipermanent diversification from USD and economical rebalancing are cardinal home structural themes supporting ⁠the RMB. Externally, U.S.-China economical relations person go unchangeable and much constructive since May 2025," HSBC analysts said successful a note.

• Deutsche Bank expects this year's ​strong ​Chinese import maturation to pave the mode ​for further yuan gains.

• "A surge ‌in China's imports of upstream products volition apt beryllium followed by a further pickup successful export orders, oregon a betterment of home demand, oregon both," Deutsche Bank economists Yi Xiong and Deyun Ou said successful a note.

• Deustche Bank's baseline forecast is for the currency to fortify to 6.55 ‌per dollar astatine end-2026 from 6.7 previously.

• ​Goldman Sachs besides sees scope for further and "longer-lasting" ​yuan strength, underpinned by ​China's unprecedented outer surplus and beardown export competitiveness.

• Despite headwinds ‌from the Iran warfare and higher ​energy costs, Goldman ​said the medium-term outlook remains positive, supported by expected planetary concern successful vigor information and renewables, which would payment China's exports.

• The U.S. ​bank expects the yuan ‌to deed 6.80, 6.70 and 6.50 per dollar successful three, ​six and 12 months, compared to 6.85, 6.80 and 6.70 previously.

(Reporting ​by Shanghai NewsroomEditing by Shri Navaratnam)