Yuan weakness is metals’ strength: Bloomberg Gadfly

SINGAPORE (Nov 17): Most commodities are denominated in, and therefore pegged to, the US dollar but these days the Chinese yuan is starting to have as much influence on prices.

While there were fundamental triggers behind the recent spike and drop in raw materials, it's becoming clear that Chinese trading was among the main drivers. Investors in the northeastern city of Dalian have been piling back into commodities in a replay of what happened earlier this year. That's partly because they're seeking to protect their global purchasing power as the Chinese currency loses value.

Chinese Weight

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