Societe Generale says at times when the U.S. dollar was falling this year, it is likely that the Chinese authorities were buying U.S. treasuries while buying EUR/USD at the same time to rebalance reserves. "That allowed USD/CNY to fall without the value of the yuan overall going up." SocGen therefore recommends buying EUR/USD, as well as emerging market currencies, if USD/CNY starts falling again. USD/CNY reached a one-month high of 6.6759 on Thursday. But since the beginning of the year, USD/CNY was on a downward path, falling to 6.44 in early September 8 from around 6.96 on Jan. 3
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