The Chinese Yuan has hit a 17-month high on “Joe Biden’s US presidential election hopes as Donald Trump loses ground,” according to the South China Morning Post.
The economic development comes in the heels of a U.S. intelligence report identifying the Chinese Communist Party as seeking a Biden victory in the 2020 election.
“China’s yuan trading outside the mainland surged to its highest level in 17 months on Tuesday after new polls showed challenger Joe Biden had increased his lead over US President Donald Trump in the race for the White House that is less than a month away.
On Tuesday, the offshore yuan extended its rally to 6.7136 per US dollar in thin market flow conditions, rising in tandem with improving sentiment in global financial markets, with the Australian dollar and the Singapore dollar also gaining for a second consecutive day.”
And the rise is directly linked to the prospect of a Biden presidency, also coinciding with President Trump’s contraction of COVID-19:
“The market thinks Biden has a better chance of winning and a rising advantage of the Democrats [to take control] in the Senate,” said Ken Cheung Kin-tai, chief Asian currency strategist within the East Asia treasury department at Mizuho Bank. “This is positive for the yuan because Biden is not supportive of tariffs and trade policy to handle China’s issues.”