CNY Attracts Safe Haven Flows

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.

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