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fxJul 9, 2026, 4:44 PM

Chinese Yuan Forecast Band Tightened as Stability Holds – ING

ING's Chief Economist Lynn Song notes that the CNY has been one of the strongest performers in 2026, even against a firm US Dollar, as the forecast band tightens.

USDCNYCNY

ING Chief Economist Lynn Song highlighted that the Chinese Yuan (CNY) has emerged as one of the strongest currencies in 2026, outperforming even as the US Dollar remains firm. The stability of the Yuan has led to a tightening of the forecast band, reflecting reduced volatility and sustained policy support.

According to Song, this performance underscores the effectiveness of China's managed exchange rate regime and capital controls in maintaining currency stability amid global dollar strength. The narrowing band suggests a high probability that the CNY will continue to trade within a predictable range in the near term.

Market participants are now watching for any potential shift in the People's Bank of China's (PBOC) guidance, but for now, the Yuan's resilience appears well-entrenched.

Source: FXStreet Forex News