3 reasons to doubt the PBOC will allow the yuan to strengthen much further
Macquarie expect the People's Bank of China will have less reason to allow the rapid gains for the yuan to continue
- signing of a phase-one trade deal
- removal of China from the US currency manipulator list
- USD/yuan under 7 has restored public confidence
MBL say RMB gains will slow likely after the Lunar New Year, but a positive global risk environment will still be supportive of it.
Sure has been a rapid appreciation for the onshore mid rate: