China’s Yuan Extends Advance as Reopening Bets Boost Sentiment

The currency surged as much as 1.1% to 7.0797 per dollar as speculation over China reopening dominated market sentiment Wednesday afternoon

(Bloomberg) — The yuan extended gains, jumping to its strongest level in nearly two weeks as hopes for a relaxation of China’s Covid curbs stoked optimism about the country’s economy and fueled appetite for riskier assets.

The currency surged as much as 1.1% to 7.0797 per dollar as speculation over China reopening dominated market sentiment Wednesday afternoon. The yuan has been on a roller coaster ride this week, slumping Monday after Chinese residents protested against Covid restrictions and then paring losses in the following sessions on reopening expectations.