S&P: Trade policy risks mean more yuan depreciation pressure

The US-based rating agency, Standard and Poor’s (S&P), is out with its report on the Yuan outlook, in the face of rising trade policy risks.

Key Highlights:

Outlook for renminbi will depend on trade-tech tension. 

Does not expect substantial depreciation of the yuan.

Timing of Yuan move beyond 7 is clearly not a coincidence.

Timing of Yuan move beyond 7 may have a political dimension.

China allowed more flexibility versus the dollar.