Seeking Alpha

Yuan ceases to be one-way bet

  • The Chinese yuan has fallen for the sixth day in a row and hit its lowest level in a year, with currency analyst Kenix Lai believing that the People's Bank of China has been engineering the fall, possibly to "change the perception of the one-way bet on yuan gains."
  • Lai says the PBOC may also be "introducing two-way volatility as it prepares the renminbi for a wider trading band." The PBOC said last week that it plans to expand the range in an "orderly" manner.
  • The yuan's direction has generally been upwards, but since touching a record high against the dollar in mid-January, the currency has dropped over 1%.
  • Today, the PBOC set the renminbi's daily reference rate at 6.1184 to the dollar. The yuan is allowed to trade 1% either side of the rate.
  • The Shanghai Composite closes -2%.
  • ETFs: FXI, PGJ, GXC, FXP, YINN, HAO, KWEB, ASHR, CHIQ, TAO, CHIX, DSUM, YANG, CQQQ, MCHI, PEK, QQQC, XPP, YAO, CHXX, CHII, CHXF, YXI, ECNS, CHIE, CHIM, FCA, KFYP, CHLC, TCHI, CHNA, CEW, JEM
Comments (1)
  • samuel_liu
    , contributor
    Comments (2797) | Send Message
     
    http://on.wsj.com/1fBAglZ
    WSJ blog
    25 Feb, 08:13 AM Reply Like
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