Pressure on China’s yuan to depreciate will persist as the economy slows, according to the currency’s top forecaster. The yuan will fall to 7.26 per dollar by the end of September, according to Allan von Mehren, a strategist at Danske Bank A/S, the yuan’s most accurate forecaster as ranked by Bloomberg. That implies a 5% drop from current levels, and is more pessimistic than the median estimate of 7.13 in a separate survey. China’s currency has turned more volatile this year as the People’s Bank of China sought to curb capital outflows and overnight costs to hold yuan in Hong Kong surged, sending the offshore exchange rate to a record weekly advance. Data last week showed the nation’s exports tumbled 6.1% in December, showing the weakening yuan is doing little to lift shipments.
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