# China’s yuan risks ‘skewed towards further weakness’ as Beijing seeks to shore up economy under zero-Covid strategy | South China Morning Post

> The yuan weakened past 6.49 per dollar for the first time since August and closed at 6.4875. Beijing's focus on domestic issues and zero-Covid disruptions fuelled expectations of further yuan weakness.

- Date: 2022-04-22 · published 2022-04-22T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/4949-china-s-yuan-risks-skewed-towards-further-weakness-as-beijing-seeks-to-shore-up
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A weaker yuan raises the cost of dollar-priced imports for China and may dampen its appetite for feed commodities. Continued depreciation would add pressure on global prices.

## Read by commodity

- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2022-04-25 | 5 | +3.1% | 8.1 | Yuan broke past 6.49 per dollar on zero-Covid disruption and expectations of further weakness, a key leg of the 5-day move. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2017-09-21 | [Across The Border \| Why Beijing’s tight grip on the economy is bad news for the yuan \| South China Morning Post](https://feedsoft.ai/events/69190-across-the-border-why-beijing-s-tight-grip-on-the-economy-is-bad-news-for-the.md) | +1.1% | +0.6% |
| USDCNY | 2016-06-27 | [Update \| Chinese yuan slides to 5-year low, pound slumps further in Brexit aftershock \| South China Morning Post](https://feedsoft.ai/events/12457-update-chinese-yuan-slides-to-5-year-low-pound-slumps-further-in-brexit.md) | +0.6% | +1.0% |
| USDCNY | 2017-01-03 | [Yuan starts 2017 weaker after PBOC cuts fixing by most in two weeks \| South China Morning Post](https://feedsoft.ai/events/10250-yuan-starts-2017-weaker-after-pboc-cuts-fixing-by-most-in-two-weeks-south-china.md) | -0.1% | -1.0% |
| 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 | 2016-10-09 | [Flash crash of pound piles pressure on already weak yuan \| South China Morning Post](https://feedsoft.ai/events/5891-flash-crash-of-pound-piles-pressure-on-already-weak-yuan-south-china-morning.md) | +1.0% | +1.6% |

## Sources

- scmp.com: https://www.scmp.com/economy/china-economy/article/3175128/chinas-monetary-policy-helping-support-economy-growth

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