Bank of America Joins Goldman Sachs to Boost Yuan Forecast

Bank of America Corp. boosted its forecast for the yuan, joining other Wall Street banks in raising their estimates on bets that China’s central bank will tolerate further gains in the currency.

The onshore yuan will likely end the third quarter at 6.7 per dollar rather than 6.8 as previously expected, Claudio Piron, BofA Global Research’s head of Asia rates and currency strategy, wrote in a note on Wednesday. Goldman Sachs Group Inc., Morgan Stanley and Australia & New Zealand Banking Group also recently raised their forecasts for the Chinese currency as its advance gathered pace.