Yuan Turns Into Global Risk Bellwether as China Leads Recovery
- Fizzling dollar is left behind as markets track yuan moves
- Chinese currency boosts correlation with euro, global bonds
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As the dollar shows signs of exhaustion, the yuan is taking over as the barometer of global risk sentiment.
A worldwide rally in stocks, bonds and commodities is decoupling from the U.S. currency, which entered a bearish phase in June and is grinding lower for a fourth month. The rally is increasingly mirroring moves in the Chinese currency as it breaks psychological barriers and builds on its best month since October.