China's dollar/yuan swap points hit highest since late 2017

SHANGHAI, Aug 3 (Reuters) – China’s yuan forwards climbed on Monday to the highest in more than 2-1/2 years, driven by rising expectations of a widening yield gap between the world’s two largest economies.

One-year onshore dollar/yuan swap points rose to 1,448 points in afternoon trade, the highest since November 2017, while the offshore swap point for the same tenor hit 1,493 points, the loftiest since December 2017.

Traders and analysts said higher swap points in both onshore and offshore were due to expectations of a widening yield gap between China and the United States, a result of the divergence in the monetary policy stances of the two countries. (Reporting by Winni Zhou and Andrew Galbraith; Editing by Jacqueline Wong)

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