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China's major state-owned banks were reported buying U.S. dollars around 6.52 yuan on Dec 31, 2020, according to traders. The onshore yuan had opened at 6.5204 per dollar and hit a high of 6.5148, its strongest level since June 2018.
The intervention was seen as an effort to slow the yuan's rally and keep it from breaching a key level.
State dollar buying dampens near-term yuan appreciation, which slightly lifts the CNY-per-USD rate and reduces the pressure on Chinese buyers' import costs for dollar-priced feed. Impact on feed prices is limited.
reuters.comDec 31, 2020After 169 past neutral macro events, Chinese Yuan (CNY per USD) moved a median +0.0% over 5 sessions (50% higher; middle half -0.3% to +0.2%), and -0.0% 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.
