How To Play A Rise In The Yuan (CYB)
The Chinese yuan, China's currency, is a source of quite a bit of controversy, particulalry in the U.S. and the Pacific Rim. China likes to keep the yuan weak for the benefit of its many exporters, but the cries for yuan appreciation may eventually yield results.
Even the International Monetary Fund said the yuan is too cheap. The People's Bank of China said in a quarterly report that it will take into account "changes in international capital flows and the trends of major currencies" in its policy, according to the Wall Street Journal.
That was enough to create some speculation that China may let the yuan appreciate and the way to play that trend is with the WisdomTree Dreyfus Chinese Yuan ETF (NYSE: CYB).
CYB traded marginally higher today, but the volume was robust at nearly seven times the daily average. The Professor says if you're going to speculate on yuan appreciation, do so with CYB.
