Yuan bearish bets are at near ten-month peak
Bearish bets on the Chinese Yuan reached a ten-month peak for the last two weeks as the country’s major financial institution guided it weaker to reflect a firm greenback as well as sentiment toward most emerging Asian currencies stayed downbeat with American interest rates expected to soar.
The Yuan’s short-positions grew to the largest value since early January, revealed a Reuters survey of 21 analysts, fund managers as well as currency traders carried out between Tuesday and Thursday.
This week, the Yuan reached six-year minimums in both onshore as well as offshore markets as the People's Bank of China dared to set its daily guidance rates at the weakest levels since September 2010, thus reacting to the greenback’s recent strength.
The Yuan’s weakness bolstered worries over capital outflows and powered speculation that Beijing might allow the national currency to depreciate further to back the world's second-largest economy, though large state-run banks were suspected of intervening for the purpose of slowing the Yuan’s sag.