T. Rowe Price has turned underweight on the Chinese yuan, expecting the CFETS RMB Index to decline 1% to 2% by year-end after reaching its highest level since January 2025. The asset manager, which oversees about $1.89 trillion globally, made the move this month in its Diversified Income Bond Strategy, favoring higher-yielding frontier currencies over the yuan. Vincent Chung, co-manager of the product, said the yuan now looks increasingly expensive against the currency basket of China's major trading partners. The onshore yuan has gained 2.7% this year, making it Asia's best-performing currency even as the US dollar has also advanced. T. Rowe Price's contrarian call contrasts with expectations from Deutsche Bank, Goldman Sachs, and UBS for further yuan strength, while Macquarie Group has said the currency could rise to as much as 5 per dollar if Chinese companies unwind a large buildup of dollar holdings.
Deutsche Bank Aktiengesellschaft
Goldman Sachs Group Inc
T. Rowe Price Group Inc
UBS Group AG