Markets bet on climbing yuan

Offshore markets bet on hefty yuan gains over the next year even after the Chinese government rebuffed calls for the currency to rise, signaling resistance to change during US President Barack Obama's first visit to China.

Outside pressure has been building on the Chinese authorities to let the yuan rise after more than a year of it being nearly frozen in place against the weakened dollar, with the head of the International Monetary Fund the latest to weigh in.

Obama has promised to raise the issue of the yuan's exchange rate during his talks in Beijing this week, putting the spotlight on a major bone of contention, which has the potential to shake currency markets and diplomatic ties alike.