Yuan Rally Seen Testing PBOC's Tolerance for Gains

The video discusses the recent 3% appreciation of the Chinese currency, driven by U.S. dollar weakness and safe haven flows. It highlights market reactions and forecasts, noting that policymakers are concerned about the rapid appreciation. The discussion also covers the potential impact of a U.S. dollar rebound on the Chinese currency and the Federal Reserve's current stance on rate hikes, which is expected to remain accommodative until the end of the year.

What concerns do policymakers have regarding the pace of currency appreciation?

What is the expected impact of U.S. Federal Reserve policies on the Chinese currency?