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Chinese policymakers introduced measures this week to curb the yuan's rapid appreciation, which had driven capital inflows and raised concerns about exports. The PBOC has not intervened directly, but is easing outflow restrictions so Chinese investors can buy foreign currency, and the yuan reached its strongest level since June 2018.
Policy aimed at slowing yuan gains keeps Chinese import costs for dollar-priced feed ingredients from falling further and signals a shift in China's currency stance. Its effect on feed prices depends on whether the yuan keeps weakening.
scmp.comFrank TangJan 6, 2021After 31 past bullish policy events, Chinese Yuan (CNY per USD) moved a median -0.2% over 5 sessions (42% higher; middle half -0.4% to +0.3%), and -0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
