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Yuan strikes back

China’s yuan completed 2014’s biggest quarterly gain on optimism economic stimulus measures and a new cross-border stock agreement will help bolster growth.

The People’s Bank of China injected 100 billion yuan ($16 billion) into each of the nation’s five biggest commercial banks this month via its standing lending facility before a Shanghai exchange link with Hong Kong goes live in October. China reported a record trade surplus in August, adding support to the yuan. 

The yuan climbed 1.07 percent this quarter to 6.1395 per dollar in Shanghai, China Foreign Exchange Trade System prices show. The currency touched 6.1252 on Sept. 26, the strongest level in more than six months.

Shanghai’s exchange link with Hong Kong will allow for a net 23.5 billion yuan of daily cross-border purchases. China is counting on the link’s success to help liberalize its financial system, increase the role of the yuan and give its citizens more investment channels amid a slumping property market and increased risks from local wealth-management products

The yuan and Thailand’s baht are the only gainers this quarter among 24 emerging-market currencies tracked by Bloomberg.