Goldman Projects Yuan Could Reach 6.40 per Dollar Within a Year
Goldman Sachs expects China's yuan to strengthen to 6.40 per dollar within a year, up from around 6.69. The bank's global head of FX research says forward markets have not fully priced in that forecast. Goldman estimates the yuan is currently 20% to 25% undervalued.
Goldman Sachs has forecast that China’s yuan could appreciate to 6.40 per U.S. dollar within a year, compared with a recent level near 6.69. The firm’s global head of foreign-exchange research said forward markets have not yet reflected that projection. Goldman also puts the yuan’s undervaluation at 20% to 25%. Currency forecasts like this are closely watched in global trade and finance because exchange rates shape cross-border costs and investment decisions.
If the yuan strengthens as projected, it could affect Chinese exporters, importers, travelers, and global investors. Exporters might face pressure if their goods become more expensive abroad, while importers and outbound travelers could gain purchasing power. Foreign firms and investors with yuan exposure may revisit pricing and hedging plans. The scale of any social or economic effect would likely depend on how quickly and smoothly the currency moves.