Why yuan's sharp drop cannot be ignored - John Hardy, Saxo Bank Head of FX Strategy The Chinese yuan fell by almost 1 percent in late February, its biggest drop since September 2011. Saxo Bank's John Hardy says the drop is an intentional move by the Chinese authorities trying to stamp out the huge carry trade, where investors are trying to get dollar funding offshore, bring it back into China and take advantage of much higher rates in China. Hardy thinks it's likely authorities will continue to sow some uncertainty and overall, the Chinese currency is vastly overvalued. (VIEW LINK)