Bloomberg reports this morning that China is giving signals it is ready to stop limiting yuan gains versus peers to boost exports, after seeing strong export growth of late:
The unshackling of the trade-weighted index from the dollar may be a sign China has reached its goal in weakening the currency amid a recovery in exports. A Bank of International Settlements index of China’s real effective exchange rate fell to the lowest since August 2014 in May.
The basket was created in late 2015, just months after the yuan’s one-off devaluation roiled global markets. It traded near the highest since March on Wednesday, as the yuan rallied to its strongest level in more than a year versus the greenback.