# Asian FX at crossroads as yen, yuan diverge | Reuters

> Asian currencies diverged as the yen and yuan moved in different directions. The PBOC had surprised markets the prior week by cutting key interest rates, and the yuan was fixed at its weakest level in a while. Chinese bond yields hit record lows.

- Date: 2024-07-31 · published 2024-07-31T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/4687-asian-fx-at-crossroads-as-yen-yuan-diverge-reuters
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Monetary easing and a weaker yuan reflect Chinese efforts to support growth, but weak currency conditions can reduce purchasing power for imported feed inputs. The effect on grain and meal prices is indirect.

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2024-07-31 | 1 | -0.4% | -3.7 | Reuters piece dated the move day describes the yen and yuan diverging after the PBOC rate cut, directly relating to yuan direction on 2024-07-31; the CNY per USD fall (yuan strength) fits a surge alongside the yen. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2019-11-28 | [Yen gains, yuan falls as Hong Kong tensions heighten risk aversion \| Reuters](https://feedsoft.ai/events/56291-yen-gains-yuan-falls-as-hong-kong-tensions-heighten-risk-aversion-reuters.md) | +0.2% | -0.5% |
| USDCNY | 2022-11-01 | [China's yuan bounces from 15-year low as dollar bulls retreat \| Reuters](https://feedsoft.ai/events/38900-china-s-yuan-bounces-from-15-year-low-as-dollar-bulls-retreat-reuters.md) | -1.1% | -3.0% |
| USDCNY | 2025-09-03 | [China uses yuan as olive branch in US trade talks \| Reuters](https://feedsoft.ai/events/23113-china-uses-yuan-as-olive-branch-in-us-trade-talks-reuters.md) | -0.3% | -0.3% |
| USDCNY | 2023-01-12 | [Yuan hovers at 5-month high ahead of US CPI; FX demand for tourism may pick up \| Reuters](https://feedsoft.ai/events/37984-yuan-hovers-at-5-month-high-ahead-of-us-cpi-fx-demand-for-tourism-may-pick-up.md) | +0.1% | +0.1% |
| USDCNY | 2023-06-29 | [China, Japan joined at the hip in FX war \| Reuters](https://feedsoft.ai/events/35736-china-japan-joined-at-the-hip-in-fx-war-reuters.md) | +0.1% | -1.0% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/asian-fx-crossroads-yen-yuan-diverge-mcgeever-2024-07-31/

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