A cut-resistant combined yarn is described that includes a wire component. Kinking and knotting of the wire component resulting from stretching of the wire component during knitting is avoided by encasing the wire component within a cut resistant combined yarn that has a higher stretch resistance than the wire component. The combined yarn includes at least one strand of stainless steel, at first non-metallic strand of an inherently cut-resistant material, and a second non-metallic strand of a cut resistant material, a non-cut resistant material or fiberglass. The non-metallic strands are air interlaced with each other to form intermittent attachment areas along the lengths of the strands. At least one or the other of the strands is a multi-filament strand. During air interlacing operation, the two non-metallic strands encase the stainless steel strand in the non-metallic strands at least in some of the zones. A composite yarn may be formed by wrapping at least one cover strand wrapped about the combined yarn in a first direction. A second cover strand may be wrapped about the combined yarn in a second direction opposite the first direction.