Asia's top FX forecaster says yuan will end 2020 as one of the worst-performing currencies – Bloomberg
|MUFG Bank Ltd., which topped the currency-forecasting stakes for the region in the final quarter of 2019, thinks trade tensions will return and China's yuan will end 2020 as one of emerging Asia's worst-performing currencies, Bloomberg reported.
Key quotes
People are very bullish and they’re not really seeing any clouds in the sky for the yuan. They are kind of acting as if Trump is going to be a very different creature when it comes to trade this year.
The crusty cake of protectionism that sort of enveloped the global economy is still going to be there.
China is like a runner with a 120-kilogram of debt on its back. Even though they’re able to run faster for a little while, eventually they’ll get tired again.
Yuan has appreciated by more than 4% over the last four months on expectations for US-China trade truce. The two nations signed a phase-one trade deal this week.
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