JPMorgan Asset Management 
JPM, the $4.3 trillion global money manager, has trimmed its long yuan positions against the dollar in recent weeks as the currency’s earlier strength begins to lose momentum. Julio Callegari, the firm’s chief investment officer for Asia fixed income, said the move reflects a shift away from one of this year’s stronger Asian currency trades as the yuan’s outperformance starts moving into a more consolidating phase.
The yuan remains the best-performing Asian currency this year, gaining about 3% to around 6.79 per dollar, while also reaching its highest level in nearly four years on the official CFETS RMB Index. Still, the pullback in bullish positioning suggests investors may now see better upside elsewhere after the yuan recently retreated from its strongest dollar level since 2023.
Callegari still expects the yuan could rise as high as 6.5 per dollar by year-end if the greenback weakens, supported by China’s trade and current-account position. However, JPMorgan Asset Management has rotated toward higher-yielding currencies such as the Philippine peso and Mexican peso, while Callegari expects South Korea’s won, currently among Asia’s weakest performers this year, to possibly become one of the biggest currency surprises heading into 2027.
