Yuan approaches 28-month high on trade-weighted basis
The yuan is nearing a 28-month high on a trade-weighted basis, undermining claims of deliberate devaluation.
The currency’s recent trajectory may reduce market sympathy for ECB President Lagarde’s comments on the yuan’s level.
The IMF considers the yuan 15-16% undervalued, but China’s priority appears to be dampening volatility rather than engineering depreciation.