Danger Looms for Yuan Bears With Approach of ‘Two Sessions’

(Bloomberg) — Traders betting on a weakening yuan are doing so at a time Beijing’s tolerance for a soft currency is at a minimum.

Bears were on the front foot when the currency fell almost 3% in February, its biggest drop in four months, and slid to the brink of the psychological level of 7 per dollar on Monday. But it then jumped the most in four weeks Wednesday following stronger-than-expected factory data and will shortly come under the close gaze of officials seeking to avoid wild swings.