Yuan Declines Amid Bets Depreciation Concern Spurring Outflows
- Import surge from Hong Kong may show capital exit, OCBC says
- FX reserves shrank if adjusted for valuation effects: Goldman
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The yuan fell the most in two weeks amid speculation depreciation concerns are prompting investors to shift money overseas and as the dollar headed for its biggest five-day gain since November.
A record surge in imports from Hong Kong last month indicates that people are moving money out because they expect the dollar to strengthen as the Federal Reserve prepares to increase interest rates, said Tommy Xie, a Singapore-based economist at Oversea-Chinese Banking Corp. China’s imports from Hong Kong jumped 204 percent in April to $2.1 billion, according to official data released Saturday.