Yuan carry trade dims amid U.S. rate cut expectations

SHANGHAI/HONG KONG — Previously buoyant yuan carry trade is nearing an expected turning point, with an expected U.S. interest rate cut adding to the slack caused by a slide in Japanese stocks in early August.

The yuan strengthened to 7.0825 to the dollar in intraday trade in Shanghai on Friday, a level last seen in June 2023. It rose more than 0.13 against the dollar in August alone, its biggest monthly gain in nine months since late July. down.

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