Goldman Sachs Asset Management has been betting against the Chinese currency as a slowdown in the world’s second-largest economy spurs capital outflows.
“We’ve been short the yuan for several months,” Yacov Arnopolin, who helps oversee about $39 billion in emerging-market debt as a managing director at Goldman Sachs Asset, said in a March 16 interview in New York. “It’s certainly difficult to continue the strengthening trend in the face of the slowing economy. It’s a challenging time.”
The yuan has fallen 0.5 percent against the greenback this year, following a 2.4 percent drop in 2014 that was the first annual decline in five years. Premier Li Keqiang has set China’s 2015 economic growth target at 7 percent, the least in more than 15 years.
This article 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 Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.