Dollar Slumps Against Yuan as Fed Rate Hike Brought into Question

The US Dollar has been declining against the Chinese Yuan, reaching its lowest levels in 2026. As of Tuesday, the USD/CNY exchange rate was near 6.77, a drop of around 3.3% since December.

Nomura expects the decline to continue, maintaining their prediction despite the slight stabilization seen on the day. The current rate is also 0.4% lower for July and close to its year-to-date low of 6.7562.

The Federal Reserve's interest rate hike plans are also being closely watched. While rate futures markets indicate a possible increase, experts believe that actual inflation data and recent geopolitical developments may affect the decision-making process.