Yuan May Extend Drop Versus Peers as Beijing Seeks Exports Boost

China’s desire to boost exports at a time of global trade turmoil means the yuan now looks set to weaken against most major currencies. One possible exception: the dollar.

The yuan may fall as much as 3% in the short term versus an official currency basket, according to Oversea-Chinese Banking Corp., while TD Securities sees a drop nearer to 4%. The basket, tracked by the CFETS RMB Index, measures the yuan’s performance against the currencies of 25 major trading partners, including the dollar. It slipped to the lowest level since 2020 this month.