Comments on the Chinese yuan from Bank of America Merrill Lynch head of global rates and currencies research
(David Woo)
– “On the eve of the December FOMC meeting … The question is, given the semi USD/RMB peg and China’s increasing open capital account (which come at the expense of China’s monetary independence), whether China can live with higher U.S. interest rates and a higher U.S. dollar. We are skeptical.
Woo is forecasting the USD/CNY to 7.0