Chinese Yuan Attractiveness Grows

China’s tightly-controlled yuan traded at a record high against the U.S. dollar on Tuesday and unprecedented demand has made it stand out as one of the world’s most attractive currencies, analysts told CNBC.

Following strong trade data published over the weekend, the People’s Bank of China (PBOC) has been aggressively fixing the yuan’s daily mid-point at its highest levels since the 2005 currency revaluation.

On Tuesday, the yuan was fixed at 6.1114 to the dollar and rose to a fresh record high of 6.0703. The central bank controls yuan trading by limiting its movement to 1 percent on either side of a daily-fixed mid-point.

“To my mind this [the yuan] is out on its own as the best currency on the planet,” Stuart Oakley, managing director of Asian currency trading at Nomura, told CNBC Asia’s Squawk Box on Tuesday.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza