As a presidential candidate, Donald Trump turned China's currency into a campaign issue, but Republican political stumbles are now strengthening the yuan.
Analysts said the newly resurgent Chinese currency, which has been slowly trending higher since May, was all about the dollar's sudden weakness.
"Just looking at a chart of the pair might lead one to think that the yuan is on a tear and that something new is going on in China," analysts at Credit Suisse said in a note this week. "In contrast, we view the fall in the dollar/yuan pair as all about broad dollar weakness."
Analysts saw that as a sign of further dollar weakness ahead.
"This revelation is huge as just last week President Trump said that expanding the investigation beyond Russia would be out of bounds so with Muller broadening the Inquisition into Trump's business dealings, U.S. political risk could move to whole new level as this foxtrot plays out," Stephen Innes, a senior trader at OANDA, said in a Friday note.
Reference: CNBC
Read more: http://www.cnbc.com/
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