# China’s yuan eases against the dollar on widening yield differential - The Pound Hub

> The yuan eased against the dollar as the gap between Chinese and US 10-year bond yields widened by 24 basis points since December 27 to 144 bps. The PBOC set its midpoint at 7.1029 per dollar, weaker than the prior fix. Traders expected exporter dollar holdings to convert to yuan before Lunar New Year.

- Date: 2024-01-04 · published 2024-01-04T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/11843-china-s-yuan-eases-against-the-dollar-on-widening-yield-differential-the-pound
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A weaker yuan raises the dollar cost of Chinese purchases, which can temper import demand for feed ingredients. The effect is short-term and small for grain markets.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2016-11-10 | [Donald Trump's win in US presidential election sends China yuan to six-year low against dollar](https://feedsoft.ai/events/7740-donald-trump-s-win-in-us-presidential-election-sends-china-yuan-to-six-year-low.md) | +1.3% | +1.9% |
| USDCNY | 2018-07-20 | [China’s yuan falls against dollar, helping exporters \| The Seattle Times](https://feedsoft.ai/events/64270-china-s-yuan-falls-against-dollar-helping-exporters-the-seattle-times.md) | +0.2% | +1.6% |
| USDCNY | 2022-08-19 | [China Yuan Slumps to Near-Two-Year Low Against USD as Rate Differential Widens - Bloomberg](https://feedsoft.ai/events/40262-china-yuan-slumps-to-near-two-year-low-against-usd-as-rate-differential-widens.md) | +0.9% | +2.9% |
| USDCNY | 2022-09-29 | [CNY/USD: Why China’s Yuan Hit Record Lows Against the Dollar - Bloomberg](https://feedsoft.ai/events/7207-cny-usd-why-china-s-yuan-hit-record-lows-against-the-dollar-bloomberg.md) | -1.2% | +0.3% |
| USDCNY | 2020-11-27 | [Yuan keeps on appreciating against both the dollar and the euro](https://feedsoft.ai/events/50362-yuan-keeps-on-appreciating-against-both-the-dollar-and-the-euro.md) | -0.7% | -0.7% |

## Sources

- thepoundhub.com: https://thepoundhub.com/china-currency/chinas-yuan-eases-against-the-dollar-on-widening-yield-differential/
- reuters.com: https://www.reuters.com/markets/currencies/chinas-yuan-eases-against-dollar-widening-yield-differential-2024-01-05/

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