Most institutions expect the yuan to climb further against the dollar by the end of the year

　　China's (CHN) yuan will get a boost from seasonal strength at the end of the year, while exporters are also likely to sell dollars after a recent sharp rebound in the yuan, analysts said.

　　According to Bloomberg data, the yuan has risen in November and December in each of the past six years, with the biggest gains coming in 2022.

　　With its recent sharp rally, a growing number of analysts expect the renminbi to break its long downward trend; Some analysts expect the yuan to rise to 7.0 against the dollar, its strongest level since May.

　　For the near-term trend, most institutions expect that as long as the US dollar index remains weak, the yuan is expected to continue to rise.

　　"The renminbi tends to appreciate in the months ahead of the year-end and Lunar New Year as exporters need more local currency to meet their cash needs," said analysts at China International Capital Corporation.

　　Leo Wang, managing director of China research at Evercore ISI, said: "The decline in the dollar index is key to sustaining the yuan's rally. For foreign exchange settlement, we think December is the peak and seasonal factors are likely to push the yuan up against the dollar at the end of the year."

　　"We remain relatively constructive on the yuan at the end of the year and into 2024, given that the macro outlook seems to be stabilising and seasonal factors for the yuan also favour further strength for the rest of the year and the beginning of the year," said Zhi Xiaojia, head of research at Credit Agricole.