# China’s yuan touches 2-year low on dollar strength, COVID resurgence - Markets - Business Recorder

> The yuan touched a more than two-year low against the dollar on Sept. 5, pressured by broad dollar strength and a resurgence of COVID-19 infections. Shenzhen adopted tiered anti-virus restrictions and Chengdu extended lockdown curbs, while the PBOC set firmer-than-expected fixings.

- Date: 2022-09-05 · published 2022-09-05T12:00:00.000Z
- Category: disease · region China · magnitude low
- Page: https://feedsoft.ai/events/12274-china-s-yuan-touches-2-year-low-on-dollar-strength-covid-resurgence-markets
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Lean Hogs](https://feedsoft.ai/c/HOGS.md)

## Why it matters

Renewed COVID restrictions weaken Chinese economic activity and feed demand, and a weaker yuan raises the dollar cost of imports, both bearish for feed ingredient purchases.

## Read by commodity

- SOY: bearish ▼
- HOGS: bearish ▼
- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2022-09-06 | 1 | +0.8% | 3.0 | Dollar strength and COVID resurgence pushed the yuan to a two-year low on Sept. 5, setting the extreme starting point for the sharp reversal and contributing to the volatility. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2022-11-08 | [China’s yuan dips as fresh COVID outbreaks offset reopening optimism - Markets - Business Recorder](https://feedsoft.ai/events/6249-china-s-yuan-dips-as-fresh-covid-outbreaks-offset-reopening-optimism-markets.md) | -2.5% | -3.5% |
| SOY | 2019-09-11 | [ASF drives Chinese soy meal consumption to 4-year low \| Feed Strategy](https://feedsoft.ai/events/57087-asf-drives-chinese-soy-meal-consumption-to-4-year-low-feed-strategy.md) | +4.0% | +7.1% |
| SOY | 2021-04-22 | [ASF resurgence in China may slow imports of feedgrains \| The Western Producer](https://feedsoft.ai/events/47644-asf-resurgence-in-china-may-slow-imports-of-feedgrains-the-western-producer.md) | +4.0% | +2.7% |
| SOY | 2021-03-10 | [Resurgence of African Swine Fever in China Threatens Global Grain Demand](https://feedsoft.ai/events/48100-resurgence-of-african-swine-fever-in-china-threatens-global-grain-demand.md) | -1.2% | -2.3% |
| SOY | 2019-08-28 | [Column: U.S. corn, soy sales at 14-year low with new marketing year days away](https://feedsoft.ai/events/5703-column-u-s-corn-soy-sales-at-14-year-low-with-new-marketing-year-days-away.md) | +1.9% | +5.1% |
| SOY | 2020-02-27 | [COVID-19 scare hits poultry business - The Hindu](https://feedsoft.ai/events/54755-covid-19-scare-hits-poultry-business-the-hindu.md) | +2.0% | +0.1% |
| HOGS | 2021-03-10 | [Resurgence of African Swine Fever in China Threatens Global Grain Demand](https://feedsoft.ai/events/48100-resurgence-of-african-swine-fever-in-china-threatens-global-grain-demand.md) | +4.4% | +14.3% |
| HOGS | 2020-11-16 | [Genesus Global Market Report: China, November 2020
						 \| The Pig Site](https://feedsoft.ai/events/50148-genesus-global-market-report-china-november-2020-the-pig-site.md) | -2.0% | -2.9% |

## Sources

- brecorder.com: https://www.brecorder.com/news/40195762

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