Yuan Traders Target 6.50 as They Double Down on Options Bets

Bets on a stronger yuan are picking up in currency-option markets, with traders positioning for a move toward 6.50 per dollar by year end.

Trading in dollar-yuan options surged on Thursday to its highest since at least before President Donald Trump’s re-election in November 2024, with positioning tilted sharply for the Chinese currency to advance, including some bets of around 5%. Put option volumes worth $100 million or more — wagers on yuan gains — were double that of calls that profit from a decline, according to data from the Depository Trust & Clearing Corp.