The yuan’s rally that took it to an eight-month high this week may prove fleeting as economic headwinds and a potential dollar rebound weigh on further gains, analysts say.
The currency’s attempt to break out of its recent narrow trading range will be limited by pressure from higher US tariffs, even if a trade deal is reached, and sluggish domestic demand, they said. The dollar meanwhile could be set to recover as traders wind back bets on Federal Reserve interest-rate cuts.