Yuan Expected To Rise 5% Against The Dollar

According to Wisdom Tree Asset Management, the yuan is expected to rise 5% against the U.S. dollar this year. In an interview with Reuters, Bruce Lavine, President of Wisdom Tree Asset Management said that he was expecting the Chinese currency to be revalued by 2% in the next few months and a further 3% by the end of this year.

China’s policy of keeping the yuan pegged against the U.S. dollar at 6.8 has faced a lot of criticism in the U.S., with some lawmakers in the U.S. asking that China be branded as a “currency manipulator.” However, the U.S. Treasury Department has tried to calm things down lately by postponing a decision on whether to brand China as a “currency manipulator” or not, with the Treasury secretary, Timothy Geithner, saying that international diplomacy rather than bilateral pressure will make China revalue its currency.