China’s yuan is poised for a huge rally against the dollar as Beijing comes under pressure to let its currency strengthen, according to Eurizon SLJ Capital chief executive Stephen Jen.
The yuan has appreciated around 2.4% against the dollar this year, but it has weakened against other currencies given the even bigger drop in the greenback elsewhere. That has created the appearance of an “opportunistic devaluation,” something Jen said will lead to pushback from China’s major trading partners. The yuan was trading at around 7.13 per dollar on Monday.