Bank of America Merill Lynch revises lower year end the value of Yuan against US dollar forecast from 6.9000 to 6.8000. However, those expectations remain also largely positive compared to other expectations for the stability of the currency near 6.4000 levels in the fourth quarter of this year.
The Bank attributed these expectations to the continuation of foreign portfolio inflows into Chinese government bonds and equities. The Yuan will weaken this year due to deteriorating China growth and inflation dynamics. At the same time, Bank experts cut their first quarter forecast from 6.9500 to 6.5000.
