Yuan Is Halfway Through Erasing Losses Since Trade War Began

China’s rallying yuan is more than halfway through its recovery from a selloff triggered by President Donald Trump’s trade war.

Underpinning the recent strength in the Chinese currency are its wide interest-rate premium over the borrowing costs on the dollar and the country’s relatively fast economic recovery from the virus pandemic. The prospects of a win by Joe Biden in the U.S. presidential election are also boosting confidence in the yuan because the Democrat is expected to be less hostile -- or at least more predictable -- in his policies toward Beijing.