Story perspectives

Goldman: Yuan 20% Undervalued, Could Hit 6.50 Post-Trump-Xi Talks

5/11/2026

Summary

Goldman Sachs Forecasts

Goldman Sachs says the renminbi is about 20% undervalued versus the U.S. dollar.
Strategist Kamakshya Trivedi’s team forecasts USD/CNY will drop to 6.70 in six months and 6.50 in a year.
President Donald Trump and Chinese leader Xi Jinping will meet Thursday and Friday in Beijing, which Goldman Sachs says could push the yuan to 6.50 and raise U.S. import costs while boosting earnings of U.S. firms with China exposure.

Summary

Renminbi Hits

The renminbi hit a three-year high, which analysts see as Beijing’s confidence ahead of the U.S. President Donald Trump-Xi summit.
The surge aligns with intensified U.S.–China rivalry in artificial-intelligence and other advanced technologies.
It also draws attention to China’s digital-currency push, including blockchain payments and a central-bank digital yuan.
Commodity traders and market strategists warn the move could spur short-term volatility in FX, equity, bond and commodity markets.

Summary

PBOC Caps Yuan

The People’s Bank of China (PBOC) confines the onshore yuan to a ±2 % band around its midpoint, limiting sharp moves.
Strong export earnings prompt banks to convert foreign currency into yuan, pushing the rate upward.
Huatai Securities projects the yuan could reach 6.40-6.50 per dollar within a year, with a stable U.S. dollar index backed by jobs data keeping the rise modest and affecting travel, online purchases and China-linked invoices.

1 of 3

Goldman Sachs Forecasts

Goldman Sachs says the renminbi is about 20% undervalued versus the U.S. dollar.
Strategist Kamakshya Trivedi’s team forecasts USD/CNY will drop to 6.70 in six months and 6.50 in a year.
President Donald Trump and Chinese leader Xi Jinping will meet Thursday and Friday in Beijing, which Goldman Sachs says could push the yuan to 6.50 and raise U.S. import costs while boosting earnings of U.S. firms with China exposure.

1 / 3