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China's yuan leads rally ahead of U.S. trade deal

Monday,   13-Jan-2020   02:41 PM (IST)

China’s yuan led a rally in trade-sensitive currencies on Monday and the Australian dollar recovered some recent losses as the imminent signing of a preliminary U.S.-China trade deal boosted sentiment. The U.S.-China Phase 1 agreement, due to be signed at the White House on Wednesday, marks the first step towards ending a damaging 18-month trade dispute between the world’s two largest economies. The turnaround in the yuan, which was at multi-year lows in September, reflects investors’ growing confidence that the worst of the trade war has passed. The offshore yuan - the currency most attuned to China-U.S. trade developments - crossed the 6.9 per dollar mark to hit a new 5-1/2 month high of 6.8944, 0.3% higher on the day against the U.S. dollar.  Some investors and analysts say the yuan is enjoying an unusual turn as a haven.