Rising yuan: The yuan, now attracting interest from investors, has risen more than 2.5% against the dollar since early December. — Reuters
SHANGHAI: China’s yuan, fresh from a second year of weakening against the US dollar, is enjoying an unusual turn as a haven as Washington and Beijing prepare to sign an eagerly awaited Phase 1 trade deal this week.Analysts and traders say that Beijing might also be encouraging a firmer yuan as a concession to US President Donald Trump, who has repeatedly accused China in the past of unfairly devaluing its currency, with some speculating that the trade deal could include a moratorium on currency manipulation.
That could set the stage for further strength as attractive valuations for Chinese assets boost global demand for the tightly managed yuan, which has risen more than 2.5% against the dollar since early December.
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