RMB options betting heats up; traders expect a 5% increase by the end of the year

The foreign exchange options market is heating up with bets on the Chinese yuan strengthening, as traders position themselves for the yuan to potentially rise to 6.50 against the dollar by the end of this year. The trading volume of USD/CNY options surged on Thursday, reaching the highest level since at least November 2024, when Donald Trump was re-elected as U.S. president. Positions are notably skewed toward expectations of a stronger yuan, including bets of about 5%. According to data from the Depository Trust & Clearing Corporation (DTCC), the trading volume of USD/CNY put options (bets on the yuan appreciating) reached or exceeded $100 million, twice the volume of call options on the currency pair. (Sina Finance)

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