The yuan has had a big move against the dollar, and this strategist says there is more to come.
It's not every day the yuan rises to a record high against the dollar, but itposted its biggest gain in two months today - possibly thanks to central bank intervention. Greg Salvaggio, senior vice president of capital markets at Tempest Consulting, thinks the move is only logical.
"We think what the Chinese are doing is really what they've always done - a gradual, managed appreciation of their currency," he says. "What they did is come in overnight and really demonstrate to people 'Hey, we're committed to this appreciation.'"
Salvaggio told CNBC's Scott Wapner he thinks the yuan could rise five to seven percent against the dollar in 2012.