The Chinese yuan has rallied to a 28-month high on the prospect of a Joe Biden win, exacerbating the concerns of Trump supporters that a Biden administration will be compromised by the Communist state.
The yuan saw wild swings on election night, with the dollar initially falling on expectations of a Biden win but then surging back as it looked like Trump would win re-election.
However, by the end of the night, after thousands of mail-in ballots in several swing states suddenly dropped for Biden, the yuan had begun to recover ground.
In the 48 hours that followed, with a Biden win looking increasingly likely, the Chinese currency rallied to a 28 month high and analysts now see it rising even further.
DBS strategist Chang Wei Liang sees a Biden presidency as securing “less antagonistic U.S.-China trade relations and a rally in Chinese assets.”