# Trader who bet on gradual yuan drop now sees steeper fall - Gulf Times

> Benjamin Fuchs of BFAM Partners said Chinese authorities had taken steps in the past week to support the yuan, including asking state-owned enterprises to sell foreign currency. He warned that repeated capital controls could erode confidence and that the dollar's rise against the yen adds pressure on China to let the yuan depreciate.

- Date: 2017-01-08 · published 2017-01-08T12:00:00.000Z
- Category: policy · region China · magnitude medium
- Page: https://feedsoft.ai/events/10772-trader-who-bet-on-gradual-yuan-drop-now-sees-steeper-fall-gulf-times
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Tighter capital controls and mounting depreciation pressure raise the risk of a sharp yuan decline, which would lift dollar costs for Chinese feed importers. The episode shows how currency policy can shift the price of dollar-denominated commodities.

## Read by commodity

- DXY: bullish ▲
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2017-09-10 | [China Is Striving to Contain Its Once-Diving, Now-Thriving Yuan](https://feedsoft.ai/events/9413-china-is-striving-to-contain-its-once-diving-now-thriving-yuan.md) | +1.1% | +2.7% |
| USDCNY | 2020-10-28 | [Yuan’s Rally Faces Test After Banks Tweak Daily Reference Rate - Caixin Global](https://feedsoft.ai/events/50849-yuan-s-rally-faces-test-after-banks-tweak-daily-reference-rate-caixin-global.md) | -0.4% | -1.9% |
| USDCNY | 2024-11-26 | [China's yuan slides to four-month low on Trump's tariff promise \| Reuters](https://feedsoft.ai/events/27628-china-s-yuan-slides-to-four-month-low-on-trump-s-tariff-promise-reuters.md) | +0.6% | +0.8% |
| USDCNY | 2025-01-23 | [China’s yuan slips on worries over Trump tariff plans, pre-holiday dollar demand - Markets - Business Recorder](https://feedsoft.ai/events/9598-china-s-yuan-slips-on-worries-over-trump-tariff-plans-pre-holiday-dollar-demand.md) | -0.4% | -0.2% |
| USDCNY | 2021-10-20 | [China Sets Weaker-Than-Expected Yuan Fix, Adds More Cash  - Caixin Global](https://feedsoft.ai/events/7480-china-sets-weaker-than-expected-yuan-fix-adds-more-cash-caixin-global.md) | -0.0% | -0.1% |
| DXY | 2024-11-12 | [U.S. grains: Soybeans plunge with Trump EPA pick; wheat and corn also fall - AgCanada](https://feedsoft.ai/events/12340-u-s-grains-soybeans-plunge-with-trump-epa-pick-wheat-and-corn-also-fall-agcanada.md) | +0.8% | +1.1% |
| DXY | 2022-06-21 | [SBV ready with funds to keep forex market stable: official](https://feedsoft.ai/events/41259-sbv-ready-with-funds-to-keep-forex-market-stable-official.md) | -0.9% | +1.0% |
| DXY | 2022-06-24 | [Central bank sold roughly $7 billion to stabilise forex market](https://feedsoft.ai/events/41261-central-bank-sold-roughly-7-billion-to-stabilise-forex-market.md) | +0.2% | +1.4% |

## Sources

- gulf-times.com: https://www.gulf-times.com/story/527333/trader-who-bet-on-gradual-yuan-drop-now-sees-steeper-fall

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