China’s Yuan Is Riding High as Economy Recovers, Foreign Investors Pump In Money

The yuan is closing out its strongest quarter against the dollar in more than a decade, boosted by optimism over China’s economic outlook and by the country’s comparatively high interest rates.

From the start of July through Wednesday’s close, the yuan has strengthened 3.9% against the dollar. That puts the yuan on track for its biggest quarterly gain since early 2008, FactSet data shows. The only other bigger quarterly gains on record are from the 1970s and 1980s, long before China began reforming its currency market in 1994.

China’s resilience, as the first country to suffer from the coronavirus and then bring it under control, has helped, said Jason Brady, president and chief executive of Thornburg Investment Management. “What we do see is a strong Chinese economy, which is part of what’s behind the strong renminbi,” he said, using another name for the currency.

Having returned to work, China is

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Markets are up and the economy is down. Some next moves for investors

The New York Stock Exchange.

Andrew Burton | Getty Images

The financial markets are rising and the economy is falling. What is with this disconnect between the two? Many investors may be asking themselves if this is all a cause for concern.

So, what’s an investor to do?

To begin with, the financial markets were doing quite well before the pandemic. In fact, the S&P 500 Index closed at a record high (3,386) on Feb. 19. But once Covid-19 cases started spreading in the U.S., the markets plunged. By March 23, the S&P 500 had fallen about 34%.

Fast forward a few months, however, and the numbers tell a different story. By the end of the first week in August, the S&P 500 had risen nearly 50% since March 23, regaining almost all the ground it had lost.

Meanwhile, at the same time of this market rally, the overall economy

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Great time for long-term investors to put money into U.S.: Mnuchin

WASHINGTON (Reuters) – U.S. Treasury Secretary Steven Mnuchin said on Monday that the U.S. economy would have a “rough quarter” due to the coronavirus, but the underlying fundamentals were sound and it was a great time for long-term investors to put money into the United States.

FILE PHOTO: U.S. Secretary of the Treasury Steven Mnuchin walks to a meeting during negotiations on a coronavirus disease (COVID-19) relief package on Capitol in Washington, U.S., March 24, 2020. REUTERS/Al Drago/File Photo

Mnuchin told Fox Business that small businesses would receive details on Monday on where and how to apply for some $350 billion in emergency virus-relief loans, and the Trump administration was ready to ask Congress for more funding if the current program did not suffice.

“I expect that with all of this liquidity we’re putting into the economy to get through the next couple of months, when we reopen, we’ll be

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