Offshore yuan to weaken against US dollar in sell-off

Countinuing uncertainty: US dollar and yuan banknotes are seen in a photo illustration. Concerns are mounting that China’s economic issues are deepening. — Reuters

Beijing: Global investors have little confidence that China will succeed in shoring up its financial markets, predicting that mounting economic stress will drive the yuan’s offshore exchange rate to historic lows.

The yuan traded internationally is seen depreciating to 7.6 per US dollar before the end of the year, according to the median estimate by 455 respondents in the latest Markets Live Pulse (MLIV Pulse) survey. That implies a drop of 4% from last Friday’s close of 7.29 and would be a record low for the offshore currency.