The Euro Currency Pain Will Remain for Chinese Exporters

Since May last year, the yuan has jumped more than 20 percent with regard to the euro. This currency move hits the profit margins of Chinese exporters. Often currency moves converge back, but there is no doubt that European political leaders would prefer the euro to weaken further. As the yuan is partly pegged to the U.S. dollar, the outlook for the Chinese currency versus the euro for the remaining quarters of this year is largely linked to the development between the euro and the U.S. dollar.