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Chinese regulators are taking steps to keep the renminbi's dollar exchange rate stable, including holding off on short-term rate cuts and keeping the dollar trading band firm. The currency is down 1.4% this year at about 7.1 per dollar, ahead of the March leadership gathering.
Official support for the yuan limits near-term currency weakness, which reduces the pressure on Chinese buyers' import costs for feed ingredients. A stable yuan also means less incentive for Chinese buyers to change purchasing patterns.
ft.comHudson LockettFeb 27, 2024After 169 past neutral macro events, Chinese Yuan (CNY per USD) moved a median +0.0% over 5 sessions (50% higher; middle half -0.3% to +0.2%), and -0.0% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
