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MUFG expects USD/CNY to rise toward 6.65 by end-2026

MUFG points to weaker Chinese demand and a growing split between the new and traditional economy as reasons it sees USD/CNY tracking higher.

Reported · Written up by our desk · Major Pairs

MUFG analysts Lin Li and Khang Sek Lee said July data suggest weaker Chinese growth and a widening divergence between the “new” and “traditional” parts of the economy, shaping their view on the yuan.

They also cited short term production disruptions linked to Middle East risks and extreme weather, while emphasizing persistently weak demand and the need for additional policy stimulus.

MUFG kept its forecast for USD/CNY to reach 6.65 by the end of 2026, expecting authorities to potentially accelerate infrastructure project pipelines and disbursement of funds, with infrastructure investment picking up from September onwards.

The note was shared via FXStreet’s insights coverage.

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