Yuan is key to ongoing rally in Asian currencies: BlackRock

Singapore

ON a winning run thanks to the downtrodden dollar, Asian currency bulls have something else to smile about: the yuan.

The Chinese currency's unexpected surge over the past two weeks has put it atop the Asian leaderboard, with the gains, thought to be largely engineered by policymakers, turning around a weakening trend in the yuan. That has helped underpin the Asian rally, which has seen currencies like the Malaysian ringgit to the Thai baht hit multi-month highs on uncertainty over the outlook for US monetary policy after next week's anticipated interest-rate hike.