Yuan Outperforms Peers as China Deters Bears Before Tariffs
- Offshore yuan forward points surged to highest since July 2017
- Would be hard to manage once yuan breaches 6.9 per dollar: ANZ
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China’s currency outperformed its Asian emerging market peers this week, as state-owned banks were said to have squeezed short sellers Wednesday and Thursday before a potential wave of new U.S. tariffs.
After five months of declines, the offshore yuan was poised to become the strongest emerging market Asian currency in the first week of September. State-owned banks bought yuan forward contracts, according to traders, pushing up one-month yuan forward points -- a gauge of funding costs -- to the highest since July 2017 and forcing speculators to cover short positions in the currency.