The U.S. dollar’s bull run has been a headwind for Asian currencies in recent months, but one outlier is swimming against the tide: the Chinese yuan.
The yuan, which is still tightly controlled by the Chinese central bank, rose 1 percent against the U.S .dollar over the past three months. By contrast, the South Korean won, Indonesian rupiah and Indian rupee declined 6.2, 4.8 and 2.7 percent against the dollar, respectively.
“The CNY has proven to be a safe haven in an environment of a strong USD and it will continue to perform this role,” Darius Kowalczyk, senior economist and strategist, Asia ex-Japan at Credit Agricole wrote in a note on Thursday.
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