Asian Currency

Traders Hedging Against Yuan Gains Shows Bearish Mood Fading



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1x



(Bloomberg) — In a welcome sign for the People’s Bank of China (PBOC), traders are increasingly more concerned about hedging a yuan rise than a fall.

The premium for buying bearish put options in dollar-yuan over bullish calls has hit levels last seen in 2011, a sign traders are paying up to hedge against gains in the Chinese currency. Expected volatility in the pair remains around this year’s average.

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