Yuan Bears Squeezed as Cost to Short Surges Most Since 2011
- Offshore yuan posts biggest daily rally since January 2017
- ‘PBOC’s bottom line is to prevent one-way yuan depreciation’
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Betting against the yuan just got a whole lot more expensive.
The cost of bearish wagers on the Chinese currency, as reflected in the offshore yuan’s 12-month forward points, soared the most since 2011 on Thursday, according to data compiled by Bloomberg. The move came amid speculation that China was restricting banks’ ability to lend yuan offshore.