Yuan Trades Near Three-Month Low as Investors Wait for IMF Vote
ByThe yuan traded near a 12-week low on signs China will prevent big swings in the currency before the International Monetary Fund makes a final decision on whether to grant it reserve status.
IMF staff recommended earlier this month that the yuan be added to its Special Drawing Rights basket, alongside the dollar, euro, yen and pound. The Washington-based lender’s executive board will vote on the inclusion on Nov. 30 and approval is seen as all but certain as the fund’s major shareholders including the U.S. have said they’ll support it.
“Any massive yuan gain or depreciation is unlikely as there’s less than one week to go for the IMF decision,” said Stella Lee, president of Success Wealth Management Ltd. in Hong Kong. Investors are waiting for the final decision and after that they’ll switch back to focusing on China’s economic fundamentals, she said…
Yuan Trades Near Three-Month Low as Investors Wait for IMF Vote
