# After battle with yuan bears, China is now keen to avoid sharp currency gains

> Beijing is reportedly keen to avoid sharp yuan gains even as domestic drivers such as a weak economy and capital flight persist. The yuan has been supported by expectations of Federal Reserve rate cuts weakening the dollar and by a rally in the Japanese yen.

- Date: 2024-08-23 · published 2024-08-23T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/29022-after-battle-with-yuan-bears-china-is-now-keen-to-avoid-sharp-currency-gains
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Currency swings alter the yuan cost of imported feed grains and meal, so a managed yuan path affects Chinese purchasing appetite for soybeans and corn at the margin.

## Read by commodity

- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2016-12-30 | [Yuan Strengthens after China Announces Plans to Expand Currency Basket - Caixin Global](https://feedsoft.ai/events/73679-yuan-strengthens-after-china-announces-plans-to-expand-currency-basket-caixin.md) | -0.5% | -1.1% |
| USDCNY | 2017-06-01 | [China crushes yuan bears, snubs Moody's as currency takes off](https://feedsoft.ai/events/8835-china-crushes-yuan-bears-snubs-moody-s-as-currency-takes-off.md) | -0.2% | -0.2% |
| USDCNY | 2018-01-26 | [In Global Currency Game, China Is Losing to U.S.](https://feedsoft.ai/events/11863-in-global-currency-game-china-is-losing-to-u-s.md) | -0.3% | +0.2% |
| USDCNY | 2018-02-23 | [Chinese yuan against the dollar: China currency appreciation](https://feedsoft.ai/events/66714-chinese-yuan-against-the-dollar-china-currency-appreciation.md) | +0.1% | -0.3% |
| USDCNY | 2018-08-27 | [China yuan counter-cyclical factor: currency tweak is trade war dovish](https://feedsoft.ai/events/63741-china-yuan-counter-cyclical-factor-currency-tweak-is-trade-war-dovish.md) | +0.4% | +0.8% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/after-battle-with-yuan-bears-china-is-now-keen-avoid-sharp-currency-gains-2024-08-23/

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