The USD/CNH, or offshore USD/CNY, is steady as investors await the result of the U.S. Presidental election. However, there are signs that some investors are betting on a stronger CNY in the nondeliverable forward market, says a Hong Kong-based senior trader at a Chinese bank. "I believe some hedge funds are selling U.S. dollars and buying renminbi... If Mitt Romney wins, the renminbi may rise at a faster pace as he's more anti-China and calls for a faster currency appreciation," he says, although he adds that it's hard to predict immediate market reactions post-election. The spot USD/CNH is at 6.2385, and is likely to stay in a 6.2370-6.2400 band Wednesday. The one-year USD/CNY nondeliverable forward contracts is at 6.3526/6.3586 vs 6.3605/6.3655 late Tuesday in Asia.
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