The onshore and offshore Chinese yuan is expected to strengthen even further than current levels, according to BK Asset Management.
"Investors are underpricing the robustness of the potential recovery over the next couple of months."We're just beginning to see the recovery in the currency," Kathy Lien, managing director of FX strategy at BK Asset Management told CNBC's "" on Thursday. She said the Chinese currency could strengthen even further to 6.8 against the U.S. dollar.
"We're going to see what is depressed Chinese data, turn into what is more consistent upside surprises," she said. "That will renew the demand for the Chinese yuan and drive the yuan even higher than it is right now."China's pivot away from its zero-Covid policy has played an important part in optimism about its recovery.
HSBC's chief economist for greater China Jing Liu said the lifting of restrictions will boost growth further.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China scraps some of its most controversial Covid rules, in significant step toward reopening | CNNChina announced sweeping changes to its national pandemic response on Wednesday, the clearest and most significant sign yet that the country is moving away from its strict zero-Covid approach.
Read more »
China eases nationwide Covid restrictions after protestsChina loosens nationwide Covid restrictions following protests against the hardline strategy that grew into calls for greater political freedoms
Read more »
Forex Today: Markets remain cautious despite easing of Covid curbs in China, eyes on BOCForex Today: Markets remain cautious despite easing of Covid curbs in China, eyes on BOC – by eren_fxstreet Currencies Majors BOC Commodities Macroeconomics
Read more »
China Scraps Most Testing, Quarantine Requirements in Covid-19 Policy PivotChina took another step away from its stringent Covid-19 controls, easing quarantine and testing requirements and curtailing the power of local officials to shut down entire city blocks and raise barriers to domestic travel.
Read more »
Factbox: China COVID policy: Major changes in further easingChina's National Health Commission announced on Wednesday the most significant relaxation of its COVID-19 prevention and control protocols since the pandemic erupted three years ago.
Read more »