Reported about 5 hours ago
China's tolerance for gradual yuan appreciation is expected to boost emerging market currencies, particularly as investors prepare for falling US interest rates. The yuan plays a critical role in trade across many emerging markets, influencing currencies like the Thai baht and Brazilian real. Recent data show a significant correlation between the yuan and the MSCI EM Currency Index, suggesting that as the yuan strengthens, other currencies may follow suit. Hedge funds are increasingly optimistic about the yuan's prospects, indicating a shift in sentiment around China's currency policy.
Source: YAHOO