Another December Devaluation Call

Yu Fenghui: 美元指数突破100大关带来何影响?
I predict, after the completion of the yuan into the [SDR] basket, the United States will raise interest rates in December and the dollar will continue to rise, and the yuan will be hard pressed to continue to withstand the depreciation pressure. From the beginning of December, the RMB should start a devaluation. Of course, the powerful Chinese central bank is likely to intervene or entice big banks to sell dollars and buy its RMB in exchange rate intervention. But this is not a permanent solution, by adding RMB to the SDR, the government has promised not to interfere with currency movements. In short, from the end of the year a comparatively large RMB devaluation should be expected. Investors should pay close attention to US interest rates, the trend of the US dollar and the renminbi, to prevent exchange rate losses.

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