# Dollar buoyant; yuan wobbles after China cuts lending benchmarks

> China cut its one-year and five-year loan prime rates by 10 basis points on Tuesday, the first cut in 10 months. The offshore yuan slipped to 7.1734 per dollar, while the dollar rose broadly and reached a seven-month high against the yen.

- Date: 2023-06-20 · published 2023-06-20T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/11233-dollar-buoyant-yuan-wobbles-after-china-cuts-lending-benchmarks
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Analysts view the modest cut as unlikely to shift the currency much without fiscal spending. Persistent yuan weakness can weigh on Chinese demand expectations for imported feed ingredients.

## Read by commodity

- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2023-06-20 | 1 | +0.8% | 3.2 | The PBOC's first loan prime rate cut in 10 months, on the same day as the move, widened the rate gap with the US and lifted the dollar, which pushed the yuan weaker to about 7.17. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2020-02-20 | [Yuan falls to over 2-month low as China cuts lending benchmark \| Financial Post](https://feedsoft.ai/events/54795-yuan-falls-to-over-2-month-low-as-china-cuts-lending-benchmark-financial-post.md) | +0.3% | +0.7% |
| USDCNY | 2017-03-09 | [China's yuan weakens, prompting dollar sales by state banks](https://feedsoft.ai/events/72221-china-s-yuan-weakens-prompting-dollar-sales-by-state-banks.md) | +0.0% | -0.3% |
| USDCNY | 2024-10-08 | [China’s yuan falls against strong dollar, stocks surge after holiday](https://feedsoft.ai/events/11039-china-s-yuan-falls-against-strong-dollar-stocks-surge-after-holiday.md) | +1.4% | +1.2% |
| USDCNY | 2023-04-19 | [China’s yuan softens ahead of key lending rate moves - Markets - Business Recorder](https://feedsoft.ai/events/36607-china-s-yuan-softens-ahead-of-key-lending-rate-moves-markets-business-recorder.md) | +0.8% | +1.4% |
| USDCNY | 2024-01-19 | [China’s yuan set to weaken for a third week against rebounding dollar - Markets - Business Recorder](https://feedsoft.ai/events/32358-china-s-yuan-set-to-weaken-for-a-third-week-against-rebounding-dollar-markets.md) | -0.4% | -0.0% |

## Sources

- channelnewsasia.com: https://www.channelnewsasia.com/business/dollar-buoyant-yuan-wobbles-china-cuts-lending-benchmarks-3573541

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