China’s Yuan Plan Tested by Sole Gain Versus Dollar

The yuan’s best rally since 2011 is testing China’s resolve to take a less controlling approach to its exchange rate.

The yuan is the only major currency to strengthen versus the dollar since mid-year, making exports less competitive at a time when growth is slowing. It’s only been seven months since the People’s Bank of China engineered a record slide in the currency to deter speculators, and analysts say it may need to reprise the strategy if the yuan keeps climbing.