Hedge Funds Boost Options Bets for Yuan to Strengthen Past 7

Hedge funds are ramping up options wagers signaling that the yuan’s rally against the dollar still has room to run.

Their demand for options that become profitable if the yuan rises against the dollar has increased, according to traders who asked not to be identified. Investors are now targeting a yuan around 7 or stronger by year-end, SGX Derivatives Exchange data show, on rising confidence in China providing policy support, and shifting US interest-rate expectations.