Since April, China's currency has been strengthening at a measured pace that's effectively wiping out the appeal of holding higher-yielding dollar positions. The momentum suggests the exchange rate could test the 7 mark against the US dollar by the end of Q1 next year. For traders managing forex exposure or considering USD-denominated holdings, this trajectory raises a key question: if yuan appreciation continues at this clip, does the extra yield from dollar assets actually compensate for the currency headwind? The numbers suggest it's getting tighter.