The Chinese yuan was set to mark its biggest gain in roughly four weeks on Monday against the world's reserve currency as confidence spread about a reversal of recent losses, according to Reuters.
The yuan, which supports the world's second-largest economy, fell 0.7 percent in April against the U.S. dollar, which supports the globe's largest economy. Also known as the redback, the yuan has depreciated roughly 3.3 percent thus far against the greenback as questions mount about how much more it can slip.
The renminbi rose about 0.21 percent against the dollar on Monday since Wednesday of last week after markets were closed on Thursday and Friday for observance of Labor Day.
A less-than-bright outlook is spreading amongst option traders regarding the yuan's prospects, according to Bloomberg. Sentiment is at its lowest since July 2013.
"The concern for banks these days is getting headlines that suggest they sold something to corporate clients that didn't understand them," head of Asian exchange-rate and interest-rate strategy Geoffrey Kendrick with Morgan Stanley in Hong Kong told the news source late last month. "It becomes much more probable some structured products will start to be removed by banks."
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