# China's yuan inches up as tight liquidity pushes interbank rates higher | Financial Post

> China's yuan firmed on Thursday as tight interbank liquidity ahead of Lunar New Year pushed money-market rates higher. The overnight repo rate hit its highest level since 2015, while a global stock rout lifted safe-haven demand for the dollar and limited the yuan's gains.

- Date: 2021-01-28 · published 2021-01-28T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/49361-china-s-yuan-inches-up-as-tight-liquidity-pushes-interbank-rates-higher
- 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 firmer yuan lifts China's purchasing power for dollar-priced grain and oilseed imports, but tighter Chinese liquidity can slow buying and restock demand at the margin. Currency moves of this size have only a modest direct effect on feed prices.

## Read by commodity

- DXY: neutral
- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2022-12-20 | [China's yuan edges up as unchanged key lending rates offer no surprise \| Financial Post](https://feedsoft.ai/events/38450-china-s-yuan-edges-up-as-unchanged-key-lending-rates-offer-no-surprise.md) | -0.2% | -2.9% |
| USDCNY | 2021-04-22 | [China's yuan nears six-week high as U.S. yields ease \| Financial Post](https://feedsoft.ai/events/47810-china-s-yuan-nears-six-week-high-as-u-s-yields-ease-financial-post.md) | -0.2% | -0.9% |
| USDCNY | 2021-03-18 | [China's yuan hits 1-week high, but rally slows as Sino-U.S. meet looms \| Financial Post](https://feedsoft.ai/events/48338-china-s-yuan-hits-1-week-high-but-rally-slows-as-sino-u-s-meet-looms-financial.md) | +0.3% | +0.4% |
| USDCNY | 2019-11-06 | [China sets yuan midpoint at three-month high \| Financial Post](https://feedsoft.ai/events/56292-china-sets-yuan-midpoint-at-three-month-high-financial-post.md) | +0.2% | +0.5% |
| USDCNY | 2017-09-21 | [China's yuan inches up as post-Fed US dollar rally fades - The Business Times](https://feedsoft.ai/events/69189-china-s-yuan-inches-up-as-post-fed-us-dollar-rally-fades-the-business-times.md) | +1.1% | +0.6% |
| DXY | 2019-09-18 | [Fed cuts interest rates again, gives mixed signals on next move \| Financial Post](https://feedsoft.ai/events/56974-fed-cuts-interest-rates-again-gives-mixed-signals-on-next-move-financial-post.md) | +0.2% | -0.3% |
| DXY | 2020-09-17 | [Dollar's post Fed gains fizzle as long rate pause seen \| Financial Post](https://feedsoft.ai/events/51284-dollar-s-post-fed-gains-fizzle-as-long-rate-pause-seen-financial-post.md) | +1.6% | +0.6% |
| DXY | 2017-06-14 | [Stocks fall, dollar pares losses after Fed forges ahead with rate hike - Financial Post](https://feedsoft.ai/events/10199-stocks-fall-dollar-pares-losses-after-fed-forges-ahead-with-rate-hike-financial.md) | +0.6% | -0.9% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/chinas-yuan-inches-up-as-tight-liquidity-pushes-interbank-rates-higher

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