China’s yuan rises for sixth straight month, the longest streak since 2014, before Biden takes office
- Yuan is set for a gain of 1.6 per cent against the US dollar in November and is up 5.7 per cent so far this year
- Tensions between the United States and China are expected to remain the same under president-elect Joe Biden in the areas of currency manipulation and trade practises, analysts say
The yuan’s exchange rate rose against the US dollar in November for the sixth straight month – its longest appreciation streak in six years, reflecting Beijing’s determination to boost the yuan’s international demand while also bracing for the incoming administration of US president-elect Joe Biden.
The yuan is set for a gain of 1.6 per cent against the US dollar in November. The extended appreciation stretch is the yuan’s longest since the six-month period from May to October 2014. So far this year, the yuan has risen 5.7 per cent against the US dollar and has been the best performer among the 11 most highly traded Asian currencies, according to Bloomberg.
“There are lots of benefits for China from a stronger currency, in terms of encouraging its [global] use,” said Ray Farris, chief investment officer for South Asia at investment bank Credit Suisse. “It should provide China with some degree of insulation from the risk of US sanctions.”