Yuan Rallies on Hopes of China COVID-19 Policy Relief, Euro Surges
The yuan jumped against the dollar on Tuesday amid hopes of a potential easing in the country’s strict pandemic restrictions following an unprecedented episode of unrest.
The euro rose ahead of inflation data due on Wednesday.
The offshore yuan surged 0.9 percent to 7.1850 a dollar. The onshore yuan was up 0.6 percent at 7.1666 per dollar.
“People are getting quite excited about some sort of reopening,” said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.
The U.S. dollar, which rallied in the previous session on mounting worries over China’s COVID-19 situation, fell 0.4 percent to 106.19.
The Aussie, often used as a liquid proxy for the yuan, rose 1.2 percent to $0.6734. The kiwi similarly gained 1.3 percent to $0.6239….