China's yuan will hit 7 per dollar, trading to get 'sticky': Goldman Sachs

The yuan has come under intense pressure to fall as China became embroiled in a trade war with the US and loosened its monetary policy to bolster a slowing economy

China’s policy makers will likely allow the yuan to hit the key level of 7 per dollar within the next six months without conducting heavy intervention, according to Goldman Sachs Group Inc.

While the authorities may guide sentiment by issuing stronger fixings, they won’t likely sell the dollar heavily to defend the currency as they did in the aftermath of a shock devaluation three years ago, according to MK Tang, a senior China economist at Goldman in Hong Kong. That is because the conditions for the yuan to hit 7 are "more mature" than in the past as capital outflows remain