Yuan traders at most bearish since 2009

Hong Kong

OPTIONS traders are the most bearish they've been on the yuan since the global financial crisis, betting China will allow more depreciation versus the dollar as monetary policy is loosened to support the economy.

The one-month 25-delta risk-reversal rate for the yuan surged 78 basis points this week and touched 2.68 percentage point Thursday, the highest since January 2009, according to data compiled by Bloomberg. That's also the biggest weekly jump in more than three years. The gauge measures the premium on options to sell the currency against the dollar compared with contracts that allow purchases. The offshore yuan's reading of 3.2 percentage point is the most bearish in Asia.