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Bloomberg
Yuan traders haven’t been this dizzy since China’s shock devaluation roiled markets more than three years ago.
The currency’s 10-day volatility surged above 8 percent on Monday, the highest level since August 2015.
The wild trading contrasts with the calm that descended on Chinese financial assets less than weeks ago, before a meeting between Presidents Xi Jinping and Donald Trump triggered the yuan’s biggest two-day gain in more than a decade.
Optimism is quickly fading that the 90-day truce agreed to in Buenos Aires will ease tensions between the world’s two largest economies, after the US requested the arrest of a high-profile Chinese executive.
While further weakness in the currency may reignite concern it will fall past the key 7-per-dollar level for the first time in a decade, that’s something Goldman Sachs Group Inc. is convinced won’t happen.
The yuan is still stronger than before the G20 meeting.
China’s currency rose 0.11 percent to 6.9024 a dollar in Shanghai.