# Korean Won, Chinese Yuan Set to Gain as US Interest Rates Expected to Drop

> Analysts expect Asian currencies including the won, yuan and rupee to strengthen if the US cuts interest rates this year. Predicted won gains range from 3% to 10% depending on the size of the Fed cut.

- Date: 2024-02-20 · published 2024-02-20T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/31906-korean-won-chinese-yuan-set-to-gain-as-us-interest-rates-expected-to-drop
- Commodities: [Korean Won (KRW per USD)](https://feedsoft.ai/c/USDKRW.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Stronger Asian currencies would lower import costs for feed buyers in those markets, but the forecast is contingent on future Fed action.

## Read by commodity

- DXY: bearish ▼
- USDCNY: bearish ▼
- USDINR: bearish ▼
- USDKRW: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2019-09-30 | [Yuan inches up on better-than-expected PMI data, set for monthly gain \| Financial Post](https://feedsoft.ai/events/57290-yuan-inches-up-on-better-than-expected-pmi-data-set-for-monthly-gain-financial.md) | +0.4% | -0.8% |
| USDCNY | 2019-01-31 | [Yuan Strengthens As Fed Holds Interest Rates Steady - Caixin Global](https://feedsoft.ai/events/61310-yuan-strengthens-as-fed-holds-interest-rates-steady-caixin-global.md) | +0.5% | -0.1% |
| USDCNY | 2022-08-31 | [China starts to draw the line on the latest yuan drop](https://feedsoft.ai/events/40258-china-starts-to-draw-the-line-on-the-latest-yuan-drop.md) | +0.8% | +4.2% |
| USDCNY | 2020-07-31 | [Experts expect Chinese yuan to keep steady upward trend in H2 - Xinhua Silk Road](https://feedsoft.ai/events/52329-experts-expect-chinese-yuan-to-keep-steady-upward-trend-in-h2-xinhua-silk-road.md) | -0.8% | -1.6% |
| USDCNY | 2023-11-22 | [Offshore Chinese Yuan Gains Over 1,600 Pips Against US Dollar in Past Week](https://feedsoft.ai/events/33394-offshore-chinese-yuan-gains-over-1-600-pips-against-us-dollar-in-past-week.md) | -0.1% | +0.0% |
| DXY | 2022-08-31 | [China starts to draw the line on the latest yuan drop](https://feedsoft.ai/events/40258-china-starts-to-draw-the-line-on-the-latest-yuan-drop.md) | +0.9% | +3.6% |
| DXY | 2024-08-28 | [AUD/USD clings to gains near 0.6800 as RBA unlikely to cut interest rates this year](https://feedsoft.ai/events/29057-aud-usd-clings-to-gains-near-0-6800-as-rba-unlikely-to-cut-interest-rates-this.md) | +0.5% | -0.3% |
| DXY | 2019-10-31 | [Gold gains as dollar weakens after Fed's interest rate cut](https://feedsoft.ai/events/56483-gold-gains-as-dollar-weakens-after-fed-s-interest-rate-cut.md) | -0.1% | +0.8% |

## Sources

- kangnamtimes.com: https://www.kangnamtimes.com/business/article/72225/

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