Analysis: As China’s yuan becomes a Biden election play, PBOC pushes back | Oct 30, 2020 at 1:00 AM
  • Speculative bets that Joe Biden will win the White House on Nov. 3 and bring a steadier tone to rocky Sino-U.S. relations have turbocharged the strongest yuan rally in years, and Chinese authorities have started pushing back.
  • In recent weeks, the People’s Bank of China (PBOC) has cut the cost of shorting the currency and tweaked how it sets its trading range to remove barriers to declines.
  • To be sure, not all investors are quitting bets that a Biden win will further lift the yuan, and even fewer think the PBOC’s moves are going to reverse the upward trajectory, given China’s economic strength in a world laid low by the COVID-19 pandemic.