Record Trade Surpluses Driving Yuan

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.

CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.