RMB rising unexpectedly amid N Korea tensions

As global investors turn increasingly risk averse amid tense relations between North Korea and the US, China’s currency is becoming an unlikely winner, Bloomberg reports. The yuan is the best performer among 31 major peers since Friday, rising 1.1% to 6.6605 against the greenback. That compares with a 1.5% tumble by the South Korean won or a 0.5% drop by the Australian dollar. While China is North Korea’s key ally, the nation’s central bank has been supporting the yuan with a series of strong fixings, and bearish bets against the currency have receded after it rose above 6.7 per dollar. The currency, which at the start of the year traded at its weakest level since 2008, has roared back since the end of May as concern over capital outflows ebbed and optimism grew over the nation’s economic growth. This has sparked a virtuous cycle that’s prompted investors and companies who were previously hoarding dollars to buy the yuan.