The yuan's recent appreciation against the rupee is expected to continue, driven by differing currency management strategies in India and China, analysts suggest. Bloomberg posted on X, highlighting the contrasting approaches of the two nations in handling their currencies.
China's currency policy has been more supportive of the yuan, while India's approach has been less aggressive in defending the rupee. This divergence is contributing to the yuan's ongoing strength against the Indian currency.
Analysts believe that unless there is a significant shift in policy from either country, the yuan may maintain its upward trajectory against the rupee. The situation underscores the broader economic strategies of both nations as they navigate global financial markets.