# China starts to draw the line on the latest yuan drop

> The PBOC's fixings on August 30 and 31 kept USD/CNY below 6.90 and came in weaker than market expectations for a stronger fix. Analysts read this as policymakers drawing a line against the latest yuan decline, with 7.00 mentioned as a possible level.

- Date: 2022-08-31 · published 2022-08-31T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/40258-china-starts-to-draw-the-line-on-the-latest-yuan-drop
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

If Beijing caps yuan weakness, the dollar tailwind may fade, which could modestly support dollar-priced commodities and soften the import cost squeeze in China.

## Read by commodity

- DXY: bearish ▼
- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2024-02-20 | [Korean Won, Chinese Yuan Set to Gain as US Interest Rates Expected to Drop](https://feedsoft.ai/events/31906-korean-won-chinese-yuan-set-to-gain-as-us-interest-rates-expected-to-drop.md) | +0.1% | +0.1% |
| USDCNY | 2023-07-25 | [China state banks seen selling US dollars to prop up yuan -sources](https://feedsoft.ai/events/35257-china-state-banks-seen-selling-us-dollars-to-prop-up-yuan-sources.md) | -0.6% | +1.4% |
| USDCNY | 2019-08-26 | [China lets yuan sink, Trump says serious talks to start \| AP News](https://feedsoft.ai/events/57793-china-lets-yuan-sink-trump-says-serious-talks-to-start-ap-news.md) | +0.9% | +0.3% |
| USDCNY | 2020-08-31 | [China lifts yuan midpoint to highest since July 2019 on persistent dollar weakness \| The Straits Times](https://feedsoft.ai/events/51834-china-lifts-yuan-midpoint-to-highest-since-july-2019-on-persistent-dollar.md) | -0.3% | -0.8% |
| USDCNY | 2018-11-09 | [Timeline of China's recent measures to stabilise yuan near key level](https://feedsoft.ai/events/62263-timeline-of-china-s-recent-measures-to-stabilise-yuan-near-key-level.md) | +0.1% | -0.5% |
| DXY | 2024-02-20 | [Korean Won, Chinese Yuan Set to Gain as US Interest Rates Expected to Drop](https://feedsoft.ai/events/31906-korean-won-chinese-yuan-set-to-gain-as-us-interest-rates-expected-to-drop.md) | -0.1% | -0.5% |
| DXY | 2020-08-31 | [China lifts yuan midpoint to highest since July 2019 on persistent dollar weakness \| The Straits Times](https://feedsoft.ai/events/51834-china-lifts-yuan-midpoint-to-highest-since-july-2019-on-persistent-dollar.md) | +0.1% | +1.4% |
| DXY | 2020-08-27 | [The inexorable rise of the Chinese yuan](https://feedsoft.ai/events/51841-the-inexorable-rise-of-the-chinese-yuan.md) | -0.5% | +0.8% |

## Sources

- investinglive.com: https://investinglive.com/news/china-starts-to-draw-the-line-on-the-latest-yuan-drop-20220831/

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