Traders also suspect that while some of the hedge funds that routinely borrow short-term funds to speculate on the yuan might have been forced to square off their trades last week, the yuan bears are mostly longer-term funds with staying power.
"A lot of hedge funds do fund themselves overnight, but most people are in the three-month plus area, and it doesn't affect them," said Richard Benson, co-head of portfolio investment with Millennium Global in London. "Spot movement is spot movement, and you aren't forced to do anything."
The People's Bank of China (PBOC) hasn't explicitly confirmed it was behind the squeeze that drove interbank overnight CNH rates to 87 percent last Friday, from 4 percent a week earlier, and caused the biggest ever weekly gain in the offshore yuan against the dollar - just under 2 percent.
But that is the assumption of market professionals.
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