Yuan-Dollar Breakup Signals Rocky Road: Caixin

China’s currency has broken its traditional relationship with the US dollar over the past few months, Caixin reported, as a combination of surging exports and capital inflows have increased demand for the yuan, pushing its value higher, even as the greenback itself strengthened.

This unusual currency decoupling, which has been evident since September, has added another element of uncertainty into the debate about where the yuan is headed in 2022, because the appreciation partly reflects the more hands-off approach the People’s Bank of China has been taking toward managing the exchange rate.

Read the full report: Caixin.

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.