Bank of America-Merill Lynch revises their year-end USD/CNY forecast from 6.9000 to 6.8000, in a research note by analysts including Helen Qiao and Claudio Piron
But it's still on the high side compared to what other major players are forecasting - 6.4000 at the end of Q4 2018.
They attribute the revision to sustained FX selling by Chinese exporters and foreign portfolio inflows into Chinese government bonds and equities. At the same time, they are also lowering their Q1 forecast from 6.9500 to 6.5000.
The note argues that the yuan will weaken this year due to deteriorating China growth and inflation dynamics, and policy markers allowing more capital outflows. They forecast that China's economy will grow 6.8% this year, compared with the 6.9% in 2017.
Here are what some of the other banks are forecasting according to Bloomberg's FX forecast contribution:
