The onshore and offshore Chinese yuan is expected to strengthen even further than current levels, according to BK Asset Management.
"Investors are underpricing the robustness of the potential recovery over the next couple of months."We're just beginning to see the recovery in the currency," Kathy Lien, managing director of FX strategy at BK Asset Management told CNBC's "" on Thursday. She said the Chinese currency could strengthen even further to 6.8 against the U.S. dollar.
"We're going to see what is depressed Chinese data, turn into what is more consistent upside surprises," she said. "That will renew the demand for the Chinese yuan and drive the yuan even higher than it is right now."China's pivot away from its zero-Covid policy has played an important part in optimism about its recovery.
HSBC's chief economist for greater China Jing Liu said the lifting of restrictions will boost growth further.
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