China’s Yuan Erases 2024 Losses Amid Broad Dollar Weakness
- Chinese corporates seen repatriating FX holdings as yuan rises
- Dollar headed for worst month this year as Fed rate cuts loom
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China’s onshore yuan erased its year-to-date losses amid bets capital will flow back to the country as the dollar weakens.
The currency rose as much as 0.5% to 7.0905 per dollar on Thursday, a level unseen since December. With the Federal Reserve expected to start cutting interest rates next month, some investors see Chinese corporates repatriating their foreign-exchange holdings to the domestic market, bolstering the yuan.