Analysis and Forecasting of Exchange Rate Between Yuan and Dollar

Sino-US trade relations have been a hot topic in the economy in recent years, with the effects of the pandemic and the trade conflicts that have created a float between the Chinese and US economies. The U.S.-China exchange rate is an overall indicator that provides a good overview of various indicators of the economic relationship between the two countries. By forecasting the US-China exchange rate trend through the R studio, it is possible to identify the patterns in the economic float and the underlying trends and use this information to get a general idea of future economic trends. This information can help investors and consumers make long-term or short-term decisions to avoid economic distress. The data is obtained from FRED, and the ARIMA and KNN models are used for forecasting. The projections show a slight increase in the US-China exchange rate between 2023 and 2024. This predicts a further depreciation of the yuan and a recovery from the economic shock. This study will provide a scientific and objective data analysis and provide a reference for consumers and multinational investors.