Yuan Shorts Staging a Comeback Suggest Cash Crunch Will Persist
- Money market to remain tight amid pressure on yuan: Scotiabank
- Onshore yuan snaps three-day drop as dollar falls before Fed
Volatility Strikes the Yuan: Is it Here to Stay?
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The yuan shorts are back.
Once cowed by the specter of intervention, offshore yuan bears are positioning for further declines again, with implied volatility and forward points both jumping to the highest since at least March this week. While the yuan has stabilized somewhat around 6.9 per dollar this month, signs of faster capital outflows and an imminent Federal Reserve interest-rate increase are fueling speculation that depreciation will quicken again.