Yuan’s Volatility Slides to 10-Month Low as Currency Steadies
- Weekly ETF inflows to China, Hong Kong surge by $605 million
- IMF, PBOC researcher say exchange rate reflects fundamentals
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A gauge of swings in China’s yuan fell to a 10-month low amid receding expectations of a central bank interest-rate cut, increased emerging-market inflows and bets policy makers will limit depreciation pressures.
The currency’s one-month implied volatility, which is used to price options, dropped to 3.59 percent as of 5:10 p.m. in Shanghai, according to data compiled by Bloomberg. That’s the lowest since mid-October. In the spot market, the onshore yuan gained 0.18 percent to 6.6254 per dollar, while the currency traded in Hong Kong’s overseas market strengthened 0.21 percent.