Today People’s Bank of China (PBoC) announced the level of the yuan fix 0.43 percent stronger compared to Monday’s level at 6.8575 per dollar. As of now, the yuan is trading at 68747, up 0.06 percent for the day. Offshore yuan, which is largely traded in Hong Kong and isn’t controlled by the trading band is trading at 6.875, down 0.18 percent today so far.

But when you search for USD/CNY exchange rate in Google, the search is showing the above-attached result. The issue got resolved just recently since it was likely to be a mistake. But what triggered is a desire to assess whether such an exchange rate is possible in the near future. We previously estimated that the yuan would reach 7 per dollar and it is very close to our target, but can it slide further towards the rate mistakenly provided by Google.

While a fundamental deterioration and capital flight likely to push exchange rate weaker beyond 7 per dollar, as of now, we don’t see such happening. We don’t see yuan depreciating beyond 7.1 per dollar in the near term. The key resistance lies around 7.1 per dollar and 7.7 per dollar. If China’s debt mountain starts crumbling and crashing down, we could certainly see the yuan weaken towards 7.7 per dollar.