China Yuan Will Drop to 6.5 per USD by Year End

        0430 GMT [Dow Jones] Daiwa reckons the CNY to continue sliding for an additional 3.8% to 6.5 per USD by end-2014, and further down to hit 6.83 by end-2015. "The market selling pressure has been significant and appears to be picking up." In coming months, "if the market finds that the CNY keeps depreciating, the confusion [about the currency's direction] could turn into nervousness or even panic." This could lead to a massive exodus of money from China and a further CNY decline, Daiwa says. China markets are closed. Offshore, the USD/CNH hovers around 6.2565, i.e. a slight rebound of the CNH from 2 days ago. (fiona.law@wsj.com)
        (END) Dow Jones Newswires

        May 02, 2014 00:30 ET (04:30 GMT)