# Widening U.S.-China Rate Gap Set to Weigh on Yuan’s Resilience - Caixin Global

> Interest-rate differentials between China and the US have widened to their largest gap since November. Strategists expect this to put short-term pressure on the yuan, as Chinese liquidity is ample while the Federal Reserve remains hawkish.

- Date: 2023-03-31 · published 2023-03-31T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/37088-widening-u-s-china-rate-gap-set-to-weigh-on-yuan-s-resilience-caixin-global
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A weaker yuan raises the local cost of dollar-priced feed imports from China's buyers, which can weigh on import demand for soy and meal. The impact is modest and mainly short-term.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2024-10-28 | [China's weakening yuan set to snap three straight months of gains in Oct](https://feedsoft.ai/events/28078-china-s-weakening-yuan-set-to-snap-three-straight-months-of-gains-in-oct.md) | +0.0% | +1.7% |
| USDCNY | 2022-05-11 | [How PBOC might respond to China's weakening yuan](https://feedsoft.ai/events/10987-how-pboc-might-respond-to-china-s-weakening-yuan.md) | +0.0% | -0.8% |
| USDCNY | 2022-04-20 | [Chinese Yuan Extends Drop to Six-Month Low as U.S. Yields Rise - Caixin Global](https://feedsoft.ai/events/4946-chinese-yuan-extends-drop-to-six-month-low-as-u-s-yields-rise-caixin-global.md) | +2.5% | +5.4% |
| USDCNY | 2024-05-23 | [China Allows Yuan to Drop as Outflows, Dollar Test Central Bank’s Grip - Caixin Global](https://feedsoft.ai/events/30490-china-allows-yuan-to-drop-as-outflows-dollar-test-central-bank-s-grip-caixin.md) | +0.1% | +0.3% |
| USDCNY | 2018-06-27 | [Yuan Sell-Off Gathers Pace On Economy, Trade Fears - Caixin Global](https://feedsoft.ai/events/8530-yuan-sell-off-gathers-pace-on-economy-trade-fears-caixin-global.md) | +0.9% | +2.9% |

## Sources

- caixinglobal.com: https://www.caixinglobal.com/2023-03-31/widening-us-china-rate-gap-set-to-weigh-on-yuans-resilience-102014370.html

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