Yuan Gains Appeal for Carry Trades as Investors Seek Alternatives to Dollar
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The yuan is gaining appeal as a funding currency for emerging market carry trades due to China's stable monetary policy.
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Investors are looking for alternatives to the dollar amid signs the Fed may not ease aggressively.
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The yuan has low volatility and interest rates, making it suitable for carry trades.
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An interest rate hike in Taiwan this week may dampen appeal of the Taiwan dollar.
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The yen remains attractive for carry trades given Japan's still very low interest rates.