Goldman Sachs sees RMB strengthening to 6.5 per dollar over the next 12 months

Goldman Sachs expects the onshore Chinese RMB to strengthen to 6.5 per dollar over the next 12 months, according to Timothy Moe, co-head of Asia macro research and chief Asia-Pacific equity strategist at Goldman Sachs, reported CNBC.

“We’ve recently firmed up … in particular, our Chinese renminbi forecast from 6.7 to 6.5 on a 12 month view,” Moe told CNBC’s “Squawk Box Asia” on Thursday, adding that it was one of the firm’s “strongest views” for Asian currencies.

That comes as the dollar is in a “structural period of weakening” after being quite strong over the last few years, Moe said. He added that the driver behind this phenomenon was “the loss of US exceptionalism” as factors that previously propped the dollar up, such as relatively better economic growth stateside, have “gone into reverse.”