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The renminbi has rallied as China's stimulus plans and the Federal Reserve's shift toward lower rates drew capital back into Asian currencies. The People's Bank of China has let its daily fix move more, keeping the spot rate tightly aligned with it as the currency approached 7 per dollar.
A firmer yuan lowers the local-currency cost of dollar-priced imports such as soybeans and feed ingredients, which can support Chinese import demand at the margin. The effect on grain prices is indirect and likely modest.
ft.comJoseph Cotterill, Arjun Neil AlimOct 7, 2024After 362 past bearish macro events, Chinese Yuan (CNY per USD) moved a median -0.1% over 5 sessions (42% higher; middle half -0.4% to +0.1%), and -0.2% 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.
