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China's yuan has taken its biggest jump, to the highest value against the dollar, since a revaluation in 2005. It comes after China announced plans to further reform its exchange rate mechanism over the weekend.
The People's Bank of China initially set the mid-point start to trade flat from Friday's level. That disappointed some market players expecting the daily reference would signal appreciation. But traders believe authorities are now allowing more two-way deals in onshore trading in Shanghai, as indicated by the lack of intervention.
Foreign market players are piling up bets in offshore forwards, that China will allow greater appreciation in the near-term.
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