Yuan forwards strengthened yesterday

Yuan forwards strengthened yesterday after a central-bank adviser said China may resume a “managed float” of the currency, bolstering optimism the government will allow appreciation.

Twelve-month non-deliverable forwards rose as much as 0.2 percent to 6.6675 per dollar, according to data compiled by Bloomberg. The contracts reflect bets the currency will gain 2.3 percent from the spot rate of 6.8270.

To contact the reporter on this story: Ben Levisohn in New York at blevisohn@bloomberg.net
Last Updated: March 27, 2010 00:00 EDT