The Chinese yuan is probably already overvalued against the greenback and any efforts by the United States to lock that in as part of trade negotiations will likely backfire, Japanese financial firm Nomura said.
The Chinese yuan is probably already overvalued against the U.S. dollar and any efforts by President Donald Trump's team to lock in that level as part of trade negotiations will likely backfire, according to Japanese financial firm Nomura.
Nomura said it ultimately expects the yuan to move lower against the dollar"in the medium to long term," though it did not suggest any levels or ranges. Under pressure from a slowing economy and the trade war, the Chinese currency has repeatedly tested 7 yuan to the dollar. Nomura said that injecting any kind of formal language on the stability of the yuan into a trade deal would be an attempt to keep China from devaluing the currency and to curb"excessive interventions" in it.
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