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The offshore yuan appreciated more than 1,600 pips against the dollar over the week to November 22, much faster than the decline in the US Dollar Index. Analysts attributed the rebound mainly to a short squeeze.
The gap between the central parity rate and spot rates has been narrowing.
A stronger yuan with a narrowing fixing gap lowers the cost of dollar-priced imports for China, which can support its commodity purchasing. Analysts questioned how long the rebound will last, so the price impact is modest.
yicaiglobal.comZhou AilinNov 22, 2023After 362 past bearish macro events, Chinese Yuan (CNY per USD) moved a median -0.1% over 5 sessions (42% higher; middle half -0.4% to +0.1%), and -0.2% 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.
