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China's yuan fell to its weakest level against the dollar in more than five years on Friday. Early voting in the Brexit referendum suggested Britain might leave the European Union.
A weaker yuan makes Chinese buyers less competitive on dollar-priced imports, which can dampen import demand for soybeans and meal, while broader risk-off flows can pressure commodity prices.
reuters.comJun 24, 2016After 398 past bullish macro events, Chinese Yuan (CNY per USD) moved a median +0.0% over 5 sessions (56% higher; middle half -0.3% to +0.5%), and +0.0% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Same-day report of yuan falling to a 5-year low on Brexit referendum fears and dollar safe-haven demand directly explains the 0.62% USD/CNY rise on June 24.
The yuan fell to a five-year low on Brexit fears on June 24, starting the move within the 5-day window.
