# As China's yuan becomes a Biden election play, PBOC pushes back | Financial Post

> Speculative bets that Joe Biden will win the US presidential election and ease Sino-US tensions have driven the yuan's strongest rally in years, up about 7.5% against the dollar since late May. The People's Bank of China has responded by cutting the cost of shorting the currency and adjusting how it sets its trading range.

- Date: 2020-10-30 · published 2020-10-30T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/50847-as-china-s-yuan-becomes-a-biden-election-play-pboc-pushes-back-financial-post
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A stronger yuan lifts China's import purchasing power in dollar terms but squeezes exporters, and Chinese policy pushback may cap further appreciation. The dollar's direction tied to the election is a factor for dollar-denominated feed commodity prices.

## Read by commodity

- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2022-06-14 | [China's yuan recovers from 1-month low, Fed, PBOC in focus \| Financial Post](https://feedsoft.ai/events/41172-china-s-yuan-recovers-from-1-month-low-fed-pboc-in-focus-financial-post.md) | -1.0% | -0.5% |
| USDCNY | 2021-11-09 | [China's yuan eases as traders await inflation data; HK dollar nears 7.8 \| Financial Post](https://feedsoft.ai/events/44271-china-s-yuan-eases-as-traders-await-inflation-data-hk-dollar-nears-7-8.md) | +0.0% | -0.7% |
| USDCNY | 2023-02-16 | [China's yuan rises but strong U.S. retail sales data caps upside - Financial Post](https://feedsoft.ai/events/37552-china-s-yuan-rises-but-strong-u-s-retail-sales-data-caps-upside-financial-post.md) | +0.8% | +0.7% |
| USDCNY | 2022-09-29 | ['Do not bet': China's central bank PBOC warns against yuan speculation](https://feedsoft.ai/events/39805-do-not-bet-china-s-central-bank-pboc-warns-against-yuan-speculation.md) | -1.2% | +0.3% |
| USDCNY | 2022-11-15 | [China keeps key lending rate unchanged as policymakers balance yuan, economic risks \| Financial Post](https://feedsoft.ai/events/8204-china-keeps-key-lending-rate-unchanged-as-policymakers-balance-yuan-economic.md) | +1.3% | -1.8% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/as-chinas-yuan-becomes-a-biden-election-play-pboc-pushes-back

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