China's Yuan Rally Seen Short-Lived Despite Trade Optimism
- It has gained at least 3% since Xi, Trump agreed on truce
- Investors are overly optimistic, advance won’t last: economist
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As traders pile into China’s yuan on bets authorities will keep the currency steady, some analysts warn there’s little room for it to appreciate much further.
The yuan rallied to its highest level in more than two weeks on Wednesday after people familiar with ongoing trade talks said the U.S. is asking China to keep the value of its currency stable as part of the negotiations. The move is aimed at neutralizing any effort by Beijing to devalue its currency to counter American tariffs, they said. The yuan strengthened 0.51 percent to 6.7252 per dollar as of 4:47 p.m. local time.