Yuan Rises to Highest Since May as Short Carry Trades Abandoned
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China’s yuan climbed to its strongest since May as traders walked away from bearish bets amid a rebound in regional currencies and stronger prospects for US interest-rate cuts.
The currency at one point jumped more than 0.6% in both onshore and overseas trading, making it one of the top performers in Asia. Behind the gains was an increasing cohort of traders who are abandoning a crowded strategy that involves them borrowing the yuan cheaply and selling it against a higher-yielding currency.