The Chinese yuan will bounce back and perform strongly this year, reversing its poor performance thus far this year, foreign exchange forecasters are telling Bloomberg.
The monetary unit of the globe's second-largest economy will rise roughly 3.3 percent by the end of 2014, Nomura Holdings Inc. officials told the publication. The exchange rate of the yuan will register at 5.98 by the end of this year, economists and analysts with Scotiabank told the publication.
"Things are no longer as stable as before," senior currency strategist Sacha Tihanyi with Scotiabank in Hong Kong told Bloomberg on Tuesday. "There is more volatility and upside for the dollar versus the yuan. I might have to tweak my interim forecasts a bit, but am still fairly comfortable with the year-end one."
The renminbi has climbed about 33 percent against the greenback since July 2005, when China established a dollar peg. But the yuan's poor performance amid questionable economic data as of late is of concern to some analysts and economists.
The U.S. has warned the Asian nation that it is probing how the yuan has been presented, according to The Wall Street Journal.
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