# China's Yuan Drops Below Key 6.9 USD Mark on Fed Rate Stance

> The yuan fell below 6.9 per dollar early on Monday after Fed chair Powell said rates would stay high until inflation falls. The yuan is on track for its biggest monthly drop since April, and the PBOC midpoint was set weaker than the previous fix but firmer than expected.

- Date: 2022-08-29 · published 2022-08-29T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/40260-china-s-yuan-drops-below-key-6-9-usd-mark-on-fed-rate-stance
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A stronger dollar lifts the cost of dollar-denominated commodities for Chinese importers and tends to pressure US grain and oilseed prices, while the firmer fix hints at official resistance to further yuan weakness.

## Read by commodity

- DXY: bullish ▲
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2026-06-18 | [China's yuan weakens to one-week low on strong dollar, Fed hike bets weigh - Markets - Business Recorder](https://feedsoft.ai/events/8413-china-s-yuan-weakens-to-one-week-low-on-strong-dollar-fed-hike-bets-weigh.md) | +0.6% | +0.3% |
| USDCNY | 2021-01-29 | [USD/CNY: Yuan drops despite surging Chinese overnight repo rate - Forex Crunch](https://feedsoft.ai/events/49364-usd-cny-yuan-drops-despite-surging-chinese-overnight-repo-rate-forex-crunch.md) | +0.3% | +0.4% |
| USDCNY | 2023-04-19 | [China’s yuan softens ahead of key lending rate moves - Markets - Business Recorder](https://feedsoft.ai/events/36607-china-s-yuan-softens-ahead-of-key-lending-rate-moves-markets-business-recorder.md) | +0.8% | +1.4% |
| USDCNY | 2022-05-05 | [US Fed rate hike: how can China stem capital outflow and prop up the yuan? \| South China Morning Post](https://feedsoft.ai/events/8315-us-fed-rate-hike-how-can-china-stem-capital-outflow-and-prop-up-the-yuan-south.md) | +1.7% | +0.8% |
| USDCNY | 2023-06-21 | [Yuan (CNY USD) Drops to Key 7.2 Level on Slow Stimulus, PBOC Greenlight - Bloomberg](https://feedsoft.ai/events/11231-yuan-cny-usd-drops-to-key-7-2-level-on-slow-stimulus-pboc-greenlight-bloomberg.md) | +0.5% | +0.6% |
| DXY | 2026-06-18 | [China's yuan weakens to one-week low on strong dollar, Fed hike bets weigh - Markets - Business Recorder](https://feedsoft.ai/events/8413-china-s-yuan-weakens-to-one-week-low-on-strong-dollar-fed-hike-bets-weigh.md) | +1.4% | +1.0% |
| DXY | 2021-01-29 | [USD/CNY: Yuan drops despite surging Chinese overnight repo rate - Forex Crunch](https://feedsoft.ai/events/49364-usd-cny-yuan-drops-despite-surging-chinese-overnight-repo-rate-forex-crunch.md) | +0.7% | +0.7% |
| DXY | 2022-05-05 | [US Fed rate hike: how can China stem capital outflow and prop up the yuan? \| South China Morning Post](https://feedsoft.ai/events/8315-us-fed-rate-hike-how-can-china-stem-capital-outflow-and-prop-up-the-yuan-south.md) | +0.7% | -1.2% |

## Sources

- asiafinancial.com: https://www.asiafinancial.com/chinas-yuan-drops-below-key-6-9-usd-mark-on-fed-rate-stance

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