As China's currency trades near to its highest level against the greenback since the 2015 devaluation, don't expect the government to engineer a reversal any time soon, according to Morgan Stanley.
That's because Chinese policy makers are now embracing a strong yuan as it helps boost consumption and draw inflows, Hans Redeker, London-based global head of foreign-exchange strategy at the U.S. bank, said Tuesday. Thanks to China's position as the world's largest reserves holder and trade partner, that means the dollar's weakness will persist.
"The rising renminbi has a messaging function into the region if not globally," Redeker said. "It suggests that China sees advantages in a weak U.S. dollar -- reverse of renminbi strength -- as the weak U.S. dollar helps keep the global economy via credit supported." ...
... For the remainder of the report:
https://www.bloomberg.com/news/articles/2018-...ll-stay-weak...
