Yuan bears strike as capital outflows override PBoC support

BEIJING: China’s renewed efforts to curb declines in its currency are doing little to dissuade yuan bears.

Traders have turned increasingly negative amid tighter liquidity, sending bets for further losses soaring. The gap between forward contracts wagering on the offshore yuan a year from now versus its current level is heading for a record monthly jump, just as the extra cost for options to sell the currency against the US dollar hit a six-month high relative to prices for contracts to buy.