# China's Offshore Yuan is Bossing the US Dollar Around Today

> The dollar fell on January 5 after the release of Federal Reserve FOMC minutes, but the larger driver was a collapse in the offshore yuan from 6.90 to 6.80 intraday. Offshore rates also surged, with overnight rates reportedly near 40%.

- Date: 2017-01-05 · published 2017-01-05T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/10253-china-s-offshore-yuan-is-bossing-the-us-dollar-around-today
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A sharp drop in the offshore yuan and a weaker dollar can ease pressure on dollar-priced feed commodities, although analysts expect the yuan move to be temporary.

## Read by commodity

- DXY: bearish ▼
- USDCNY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2017-01-05 | 1 | -0.7% | -3.4 | The offshore yuan surged from 6.90 to 6.80 intraday on Jan 5 as overnight offshore rates spiked near 40%, which was the main driver of the dollar's fall against the yuan. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-07-28 | [Why is the US dollar losing its shine?](https://feedsoft.ai/events/35220-why-is-the-us-dollar-losing-its-shine.md) | +1.3% | +2.0% |
| DXY | 2017-09-29 | [Can the US dollar make a comeback? \| South China Morning Post](https://feedsoft.ai/events/69153-can-the-us-dollar-make-a-comeback-south-china-morning-post.md) | +0.3% | +1.7% |
| DXY | 2018-06-26 | [For the US dollar, the only way is not up \| articles \| ING THINK](https://feedsoft.ai/events/64713-for-the-us-dollar-the-only-way-is-not-up-articles-ing-think.md) | +0.8% | -0.1% |
| DXY | 2019-11-19 | [Are we witnessing the US dollar’s fall from grace?](https://feedsoft.ai/events/56263-are-we-witnessing-the-us-dollar-s-fall-from-grace.md) | +0.6% | -0.7% |
| DXY | 2018-01-23 | [China’s yuan edges up on stronger fixing, vulnerable dollar \| Business News - The Indian Express](https://feedsoft.ai/events/11862-china-s-yuan-edges-up-on-stronger-fixing-vulnerable-dollar-business-news-the.md) | -0.9% | -0.4% |
| USDCNY | 2017-01-05 | [China’s offshore yuan surges most against dollar in a year](https://feedsoft.ai/events/73180-china-s-offshore-yuan-surges-most-against-dollar-in-a-year.md) | +0.1% | -1.0% |
| USDCNY | 2023-07-20 | [Exclusive: China's state banks selling dollars offshore to slow yuan declines, sources say](https://feedsoft.ai/events/35258-exclusive-china-s-state-banks-selling-dollars-offshore-to-slow-yuan-declines.md) | -1.0% | +1.0% |
| USDCNY | 2017-09-21 | [China's yuan inches up as post-Fed US dollar rally fades - The Business Times](https://feedsoft.ai/events/69189-china-s-yuan-inches-up-as-post-fed-us-dollar-rally-fades-the-business-times.md) | +1.1% | +0.6% |

## Sources

- poundsterlinglive.com: https://www.poundsterlinglive.com/usd/5978-dollar-exchange-rate-selloff-and-cnh

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.