# USD/CNY: Yuan drops despite surging Chinese overnight repo rate - Forex Crunch

> The yuan weakened against the dollar on Friday even as China's overnight repo rate rose to 3.28%, its highest since 2015. The central bank is draining liquidity to curb leverage, while US stock futures fell on concerns about hedge fund selling and a smaller-than-hoped US fiscal stimulus.

- Date: 2021-01-29 · published 2021-01-29T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/49364-usd-cny-yuan-drops-despite-surging-chinese-overnight-repo-rate-forex-crunch
- 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 weaker yuan raises the local-currency cost of dollar-priced imports for China, which can slow purchases of US feed grains and meal. Risk-off dollar strength also tends to pressure dollar-denominated commodity prices.

## Read by commodity

- DXY: bullish ▲
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2022-08-29 | [China's Yuan Drops Below Key 6.9 USD Mark on Fed Rate Stance](https://feedsoft.ai/events/40260-china-s-yuan-drops-below-key-6-9-usd-mark-on-fed-rate-stance.md) | +0.4% | +3.9% |
| USDCNY | 2018-06-27 | [USD/CNY rises to highest since December 19 - Forex Crunch](https://feedsoft.ai/events/8532-usd-cny-rises-to-highest-since-december-19-forex-crunch.md) | +0.9% | +2.9% |
| USDCNY | 2020-02-03 | [USD/CNH at 2020 high as China re-opens with weak data, rate cuts amid coronavirus - Forex Crunch](https://feedsoft.ai/events/5139-usd-cnh-at-2020-high-as-china-re-opens-with-weak-data-rate-cuts-amid.md) | +1.2% | +0.6% |
| USDCNY | 2018-06-28 | [China: The yuan breaks out - Westpac - Forex Crunch](https://feedsoft.ai/events/8534-china-the-yuan-breaks-out-westpac-forex-crunch.md) | +0.5% | +2.8% |
| USDCNY | 2020-02-03 | [USD/CNY remains in 2-month tops near 7.02 ahead of ISM - Forex Crunch](https://feedsoft.ai/events/5137-usd-cny-remains-in-2-month-tops-near-7-02-ahead-of-ism-forex-crunch.md) | +1.2% | +0.6% |
| DXY | 2019-09-23 | [USD repo moves: Impact on AUD - ANZ - Forex Crunch](https://feedsoft.ai/events/57335-usd-repo-moves-impact-on-aud-anz-forex-crunch.md) | +0.5% | -1.0% |
| DXY | 2022-08-29 | [China's Yuan Drops Below Key 6.9 USD Mark on Fed Rate Stance](https://feedsoft.ai/events/40260-china-s-yuan-drops-below-key-6-9-usd-mark-on-fed-rate-stance.md) | +0.6% | +4.4% |
| DXY | 2021-03-04 | [EUR/USD drops under 1.2000 as Powell send US bond yields flying - Forex Crunch](https://feedsoft.ai/events/11416-eur-usd-drops-under-1-2000-as-powell-send-us-bond-yields-flying-forex-crunch.md) | +0.7% | +0.9% |

## Sources

- forexcrunch.com: https://www.forexcrunch.com/blog/2021/01/29/usd-cny-yuan-drops-despite-surging-chinese-overnight-repo-rate/

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