FXStreet (Córdoba) - According to Allan von Mehren, Chief Analyst at Danske Bank, the stronger USD dollar has put depreciation pressure on the Chinese Yuan (CNY). They project the USD/CNY to rise by 4% during the next 12 months. Key Quotes: “Depreciation pressure on the CNY has resumed as the USD strengthened. China will manage the CNY with a closer eye on trade weighted currency. Hence USD strength will generally lead to a weaker CNY versus USD”. “The CNY has become more market based following the FX reform on 11 August. Relative monetary policy between the Fed and the PBoC will work in favour of a weaker CNY versus USD over next year. We do not believe China will allow a big devaluation, as this would trigger capital outflows and be destabilising for China and the world.” For more information, read our latest forex news.