Chinese Yuan Posts Largest One-day Gain Vs. Dollar In 10 Years

The Chinese yuan recorded its largest one-day gain against the dollar in 10 years on Friday on rumors the government will soon take another step toward opening its capital account. Reports circulated that the Chinese government will soon launch a trial program that would allow individuals to directly buy overseas assets, according to currency strategists at Brown Brothers Harriman. According to the reports, the program would be launched in the Shanghai free trade zone. The currency, also known as the renminbi, has barely moved against the dollar since Aug. 11, when the government shocked the market by devaluing it. Chinese policy makers maintain a tight grip on the yuan, only allowing it to move up to 2% in either direction around a midpoint set daily by the central bank. The yuan fell 0.6% to 6.3174 to the dollar just before the close of onshore trading. It traded at 6.36 to the dollar late Thursday local time.