Hedge funds ease off profitable China FX options trade
Some still hold positions but an appreciating renminbi may make them less profitable for now
The weeks-long foreign exchange options trade profiting on a depreciating Chinese currency may be nearing its end, as Chinese central bank efforts and a recently weakening US dollar have made for a stronger renminbi.
Funds had piled into outright and exotic options structures that capitalised on a low-volatility environment and the renminbi’s gradual depreciation against currencies including the
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