Goldman Sachs assesses US dollar overvaluation as Trump visits China

Goldman Sachs strategists, led by Kamakshya Trivedi, have calculated that the Chinese renminbi (RMB) is approximately 20% undervalued against the US dollar based on proprietary valuation models. While the bank projects a gradual appreciation of the RMB toward 6.50 over the next year, it acknowledges that valuation gaps can persist due to policy factors. This assessment gains geopolitical significance as President Trump visits President Xi Jinping, revisiting long-standing tensions regarding trade, currency manipulation, and the impact of exchange rates on global manufacturing competitiveness. For investors, a strengthening RMB could act as a tailwind for Chinese equities and dollar-denominated returns, though Goldman expects only a modest closing of the overall valuation gap.

(Source：Crypto Briefing)