China Wins Battle Versus Yuan Bears With 7 Per Dollar in Sight
- Bumpy exit from Covid curbs may slow further gains in currency
- Weak yuan a key tool to support exports, says Vanda Research
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The yuan is closing in on a key milestone as hints of a China reopening fuel a burst of buying, but some analysts say the rally may soon pause.
The onshore yuan gained as much as 0.7% to 7.0450 per dollar on Thursday, approaching the 7 level it last reached in September. The rise was fueled by a softening in the Federal Reserve’s rate-hike stance and followed a 3% jump in November. Beijing’s move to allow some virus-infected people to isolate at home also underpinned the currency’s gains.