Foreign exchange is relative. If the yuan weakens against the dollar, the market is making a judgment on the appeal of both currencies. Photo: Kyodo File photo taken July 5, 2018, shows U.S. dollar and Chinese yuan banknotes. (Kyodo) ==Kyodo Foreign exchange is relative. If the yuan weakens against the dollar, the market is making a judgment on the appeal of both currencies. Photo: Kyodo File photo taken July 5, 2018, shows U.S. dollar and Chinese yuan banknotes. (Kyodo) ==Kyodo
Foreign exchange is relative. If the yuan weakens against the dollar, the market is making a judgment on the appeal of both currencies. Photo: Kyodo File photo taken July 5, 2018, shows U.S. dollar and Chinese yuan banknotes. (Kyodo) ==Kyodo
Neal Kimberley
Opinion

Opinion

Macroscope by Neal Kimberley

Will the yuan weaken further or bounce back next year? First, work out how strong the US dollar and euro are

  • Neal Kimberley says the yuan might not weaken, despite China’s slowing economy and the trade war. Foreign exchange is relative. For the yuan to weaken, the market would also be making a judgment about the appeal of other currencies

Neal Kimberley
Neal Kimberley

Updated: 10:23pm, 18 Dec, 2018

Why you can trust SCMP
Foreign exchange is relative. If the yuan weakens against the dollar, the market is making a judgment on the appeal of both currencies. Photo: Kyodo File photo taken July 5, 2018, shows U.S. dollar and Chinese yuan banknotes. (Kyodo) ==Kyodo Foreign exchange is relative. If the yuan weakens against the dollar, the market is making a judgment on the appeal of both currencies. Photo: Kyodo File photo taken July 5, 2018, shows U.S. dollar and Chinese yuan banknotes. (Kyodo) ==Kyodo
Foreign exchange is relative. If the yuan weakens against the dollar, the market is making a judgment on the appeal of both currencies. Photo: Kyodo File photo taken July 5, 2018, shows U.S. dollar and Chinese yuan banknotes. (Kyodo) ==Kyodo
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Neal Kimberley

Neal Kimberley

UK-based Neal Kimberley has been active in the financial markets since 1985. Having worked in sales and trading in the dealing rooms of major banks in London for many years, he moved to ThomsonReuters in 2009 to provide market analysis. He has been contributing to the Post since 2015 and writes about macroeconomics from a market perspective, with a particular emphasis on currencies and interest rates.