Yuan Surges Most in a Year as Fed Eases Capital Outflows Concern

China’s yuan gained the most in a year after the Federal Reserve indicated U.S. interest rates will rise slowly once it starts tightening, which may temper outflows from emerging markets.

The Fed, while noting expansion has moderated, said a rate rise in April is unlikely and that it won’t tighten policy until it is “reasonably confident” inflation will return to its target and the labor market improves. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, dropped by the most in six years after the statement Wednesday.