RMB vol returns as hedge funds take barrier trade profits
Unwinds of exotic positions saw vol jump 72% after surprise PBoC move last week
The surprise decision by the People’s Bank of China (PBoC) to raise its daily renminbi fixing last week triggered a long-awaited return of volatility to the currency, rekindling the hopes of foreign exchange options dealers that activity from traditional hedgers will pick up.
US dollar/offshore Chinese renminbi spot rose beyond the 7.20 level that had broadly held since early November, hitting a high of 7.279 on March 22 – catching markets off guard and suggesting the central bank may be
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