China's yuan gains popularity as a funding currency for global emerging-market carry trade.
China's yuan gains popularity as a funding currency for global emerging-market carry trade due to Japan's end of ultra-low interest rates and Taiwan's surprise rate hike. Investors reassess their strategies as the US Federal Reserve may not ease as expected. The yuan's low volatility and limited scope to strengthen make it an attractive option compared to the yen and the US dollar.
March 24, 2024
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