Chinese yuan is not suffering from visible stress due to the possibility of significant capital flight, says Capital Link International chief strategist Uwe Parpart. “Whatever is being reported, I don’t see it,” he added.

“When you look at the currency situation between the yuan and the dollar, you look at, first of all, interest rate differential. That will determine what’s happening,” Parpart says. “And as the US yields for the 10-year [bonds] have gone up, so have the Chinese.”

On the Emerging Market front, Parpart says there is investment opportunity in the Brazilian currency. “The Brazilian real is probably a very good currency to invest in if you want to invest in emerging markets,” he says.

Uwe Parpart is also Editor of Asia Times.