UBS podcast: UBS FX strategist Geoffrey YU talks about the RMB movement
With the Federal Reserve lowering its outlook for the US economy and long-term rates, UBS FX strategist, Geoffrey YU, expects the low volatility market environment to continue. He advises investors to focus on high-yielding currencies, especially in emerging markets and, in particular, the RMB.
In the short term, YU expects a return of inflows into China, which will increase the value of the RMB. As a result, the USD/RMB rate could trade below 6.20 in the near future. The forecast USD/RMB rates for 2014 and 2015, respectively, are 6.25 and 6.35.
Please refer to the attached UBS Podcast for more details.
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