Yuan's drop aligns it with China's cooling economy, easier policy

SHANGHAI/HONG KONG (Reuters) - A surprising rally for China’s yuan over the turn of the year has been cut short by widespread expectations that Beijing will ramp up policy easing in coming months to avert a sharper economic slowdown…

… Andy Seaman, chief investment officer at Stratton Street in London, is long the yuan, even though his fund mainly buys Chinese dollar bonds rather than the domestic ones.

He says the yuan’s fundamentals do not justify its weakness and it was weak only because of the dollar’s broad strength.

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