Bloomberg – China Teaches Yuan Bears Tough Lesson as Currency Surges Anew

PCV note that propping up the yuan has been a priority as the Chinese leadership seeks to minimize capital outflows before the bi-decade leadership reorganization this fall.

May 31, 2017

‘China is dishing out a tough lesson to currency traders and strategists alike: don’t bet against the yuan.

The currency has jumped to its highest level in seven months offshore, soaring as much as 1.1 percent on Wednesday alone, despite analyst forecasts for declines this quarter. Surging interbank rates are squeezing bears by driving up the cost of short positions.’

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