Dealers say the People's Bank of China's effort to drive down the renminbi against the U.S. dollar has hurt corporate-client demand for hedging exposure to the Chinese currency. "Over the past few weeks, most corporate clients have adopted a wait-and-see approach on the intentions of the PBOC and how the market will react to the band widening and more two-way volatility," said Ivan Wong of HSBC Holdings. "In terms of corporate hedging activity, we have seen a bit of a slowdown."

Related Summaries