Yuan 'Floor' Seen at 6.90 Per Dollar in Near Term, NatWest's Lin Says

The transcript discusses the People's Bank of China's (PBOC) reactive policy amidst US tariffs and its impact on the Chinese yuan (CNY) and offshore yuan (CNH). It highlights the expected currency market trends, with a focus on the US dollar's strength against Asian currencies. The discussion also covers the broader economic implications of the US-China trade war and the Federal Reserve's liquidity withdrawal on Asian economies, particularly those integrated into China's supply chain. Finally, it outlines investment strategies favoring the US dollar against the Korean won and Singapore dollar due to their carry trade potential.

What is the primary reason for the PBOC's reactive policy according to the discussion?

• To stabilize the Chinese stock market

• To counteract US tariffs

• To reduce inflation

• To increase foreign investments

What is the expected line in the sand for the PBOC in the near term?

• 6.90 for the onshore spot market

• 6.80 for the onshore spot market

• 6.50 for the onshore spot market

• 7.00 for the onshore spot market

Which Asian economies are most affected by the trade war due to their integration with China's supply chain?

• Malaysia and Indonesia

• Vietnam and Thailand

• Singapore, Taiwan, and South Korea

• Japan and India

Why is the US dollar preferred against the Korean won and Singapore dollar?

• Due to their low volatility

• Due to their strong economic growth

• Because they are carry positive expressions

• Because they are less affected by US policies

What is the impact of the Fed's liquidity withdrawal on Asian currencies?

• It strengthens Asian currencies

• It stabilizes Asian currencies

• It has no impact on Asian currencies

• It weakens Asian currencies