The Chinese yuan rose in the last few days after the country announced further easing measures against COVID-19, but this is only the beginning. This was stated by Cathy Lien, managing director of currency strategy at BKAsset Management in the Street Signs Asia program, according to CNBC.

According to the analyst, the Chinese currency may strengthen further to 6.8 against the U.S. dollar. Against this backdrop, the EURODOLLAR FUTURES exchange rate could fall slightly, which traders should take into account. 

“Investors are underestimating the sustainability of a potential recovery over the next few months,” Lien said. 

She said China’s yuan rise will be positively affected by the coming release of Chinese economic data, which includes industrial production and retail sales. 

“We will see depressed Chinese data turn into positive surprises. This will renew demand for the Chinese yuan and lift the yuan even higher than it is now,” she said.

Earlier, the Chinese yuan weakened to 7.3 against the U.S. dollar in early November, its worst performance since January 2008. But the Chinese yuan quickly recovered to 6.96 within about a month after Chinese authorities promised to loosen coronavirus measures.

Earlier we reported that the dollar was declining on December 9.