Currency strategists from Barclays Plc to Deutsche Bank AG are telling investors to sell the yuan, this year’s best-performing emerging-market currency, as growth slows in the world’s second-largest economy and inflows wane.
The yuan will start to weaken after Chinese policy makers boosted the official exchange rate to a record high, as measures to slow credit growth ease, said Amer Bisat, a money manager at hedge fund Traxis Partners LP.
Traxis Partners LP, the $1.2 billion hedge fund started by Barton Biggs, told clients it will liquidate a vehicle he managed and transfer the assets to another pool following his death over the weekend.
Turkish bond yields are rising faster than the rest of emerging-market debt and still can’t entice the world’s biggest investors, who say policy makers won’t curb inflation unless they take steps to slow growth.
Emerging-market stocks fell for the first time in four days as concern that Europe’s debt crisis is worsening dimmed the outlook for global growth, offsetting an increase in U.S. retail sales that was larger than forecast.