# Yuan strengthens to a 4-month high on optimism over prospects of China’s post-Covid economic recovery | South China Morning Post

> The yuan hit a four-month high against the dollar on the first trading day of 2023, with the PBOC setting its midpoint 171 pips firmer than the prior fix. Onshore spot opened at 6.9200 and traded as strong as 6.8785. The move follows a 7.9% annual loss in 2022, the largest since 1994.

- Date: 2023-01-03 · published 2023-01-03T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/12763-yuan-strengthens-to-a-4-month-high-on-optimism-over-prospects-of-china-s-post
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A firmer yuan on reopening optimism signals stronger expected Chinese demand and lower dollar pressure on import costs. USD/CNY is moving lower.

## Read by commodity

- USDCNY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2023-01-10 | 5 | -2.0% | -2.8 | Yuan hit a four-month high on the first trading day on post-Covid recovery optimism with a firmer PBOC fix, starting the window's appreciation. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2023-07-21 | [China’s yuan: will economic recovery lift currency out of the jungle after Fed effect fades? \| South China Morning Post](https://feedsoft.ai/events/35261-china-s-yuan-will-economic-recovery-lift-currency-out-of-the-jungle-after-fed.md) | -0.0% | +1.6% |
| USDCNY | 2016-06-20 | [Chinese yuan strengthens ahead of Brexit vote \| South China Morning Post](https://feedsoft.ai/events/10880-chinese-yuan-strengthens-ahead-of-brexit-vote-south-china-morning-post.md) | +0.5% | +1.8% |
| USDCNY | 2022-12-05 | [China’s yuan strengthens past 7 per US dollar amid easing of coronavirus curbs \| South China Morning Post](https://feedsoft.ai/events/6581-china-s-yuan-strengthens-past-7-per-us-dollar-amid-easing-of-coronavirus-curbs.md) | -0.9% | -1.5% |
| USDCNY | 2020-01-14 | [China's yuan strengthens to 5-month high - Chinadaily.com.cn](https://feedsoft.ai/events/55313-china-s-yuan-strengthens-to-5-month-high-chinadaily-com-cn.md) | +0.2% | +1.1% |
| USDCNY | 2017-12-26 | [China's yuan strengthens to more than 3-month high - Chinadaily.com.cn](https://feedsoft.ai/events/67711-china-s-yuan-strengthens-to-more-than-3-month-high-chinadaily-com-cn.md) | -1.3% | -3.2% |

## Sources

- scmp.com: https://www.scmp.com/business/banking-finance/article/3205383/yuan-strengthens-4-month-high-optimism-over-prospects-chinas-post-covid-economic-recovery

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