UBS Forecasts US Dollar-Yuan Rate to Hit 6.50 by Mid-2027

UBS forecasts another decline in the US Dollar to Chinese Yuan (USD/CNY) exchange rate, predicting it will reach as low as 6.50 by mid-2027.

The bank's analysis suggests that strong exports and a tolerant policy from the People's Bank of China (PBoC) are supporting the currency despite low inflation and an unfavorable interest rate gap.

According to UBS, the USD/CNY exchange rate has already fallen more than 4% in the past year, closing at 6.7083 on Friday.

The forecast indicates that this decline will continue, with a predicted rate of 6.60 by December 2026 and March 2027, followed by 6.50 in June and September.