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Photographer: SeongJoon Cho/Bloomberg
Markets

China’s Booming Exports Mean Yuan’s Yearlong Rally Far From Over

Updated on
  • Currency is Asia’s best performer this year versus the dollar
  • China debt inclusion in WGBI to draw $3.6 billion a month: UBS

The yuan has defied a slew of risks to top the rankings of Asian currencies so far this year. There are few signs it’ll be dethroned anytime soon.

Rising exports, surging bond inflows and attractive carry trade returns all argue for further gains in China’s currency. The odds of a reversal are slim as a reduction of U.S. stimulus has been priced in while the fallout from China Evergrande Group’s debt crisis may be contained.