Trader Who Bet on Gradual Yuan Decline Now Sees Steeper Drop
- China’s aggressive capital controls weaken confidence: Fuchs
- Weaker yen and other currencies may also force yuan decline
China's Yuan Depreciation an Ongoing Trend: Cole
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Last year, Benjamin Fuchs’s $2 billion hedge fund prospered by betting against a sudden yuan devaluation. Now, he says forces are lining up that are increasing the odds of steep declines.
By repeatedly tightening capital controls, China risks eroding confidence in its currency, said Fuchs, chief investment officer at BFAM Partners (Hong Kong). At the same time, the dollar’s advance against the yen and other currencies is increasing competitive pressure on China to let the yuan depreciate, he said in an interview.