# Aggressive Dollar Buying By RBI, Nationalized Banks Could Have A China Angle - Marketia

> An analysis argues that aggressive dollar buying by Indian state banks weakened the rupee past 73.5 and to 11 per yuan, a first since 2013, possibly as a strategy to curb Chinese imports and pressure China. The piece also covers the US election's potential impact on the dollar.

- Date: 2020-10-25 · published 2020-10-25T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/50899-aggressive-dollar-buying-by-rbi-nationalized-banks-could-have-a-china-angle
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Trade-related currency policy and tensions with China could shift Indian import demand for agricultural goods, while a stronger dollar pressures dollar-priced commodities.

## Read by commodity

- USDCNY: bearish ▼
- USDINR: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2022-08-31 | [China state-owned banks reportedly seen selling dollars in onshore market](https://feedsoft.ai/events/40259-china-state-owned-banks-reportedly-seen-selling-dollars-in-onshore-market.md) | +0.8% | +4.2% |
| USDCNY | 2022-10-17 | [EXCLUSIVE: Exclusive: China's state banks seen acquiring dollars in swaps market to stabilise yuan \| Reuters](https://feedsoft.ai/events/39358-exclusive-exclusive-china-s-state-banks-seen-acquiring-dollars-in-swaps-market.md) | +0.7% | -1.6% |
| USDCNY | 2024-08-30 | [China state banks buying dollars amid rapid yuan gains, sources say \| Reuters](https://feedsoft.ai/events/29021-china-state-banks-buying-dollars-amid-rapid-yuan-gains-sources-say-reuters.md) | -0.1% | -1.2% |
| USDCNY | 2023-05-26 | [China’s yuan rebounds after state banks sell dollars to lend support - Markets - Business Recorder](https://feedsoft.ai/events/36177-china-s-yuan-rebounds-after-state-banks-sell-dollars-to-lend-support-markets.md) | +0.1% | +2.2% |
| USDCNY | 2023-11-21 | [Exclusive: China's state banks are buying yuan, quickening its rally](https://feedsoft.ai/events/12027-exclusive-china-s-state-banks-are-buying-yuan-quickening-its-rally.md) | -0.4% | -0.5% |

## Sources

- marketia.com.ng: https://marketia.com.ng/regional-market-news/aggressive-dollar-buying-by-rbi-nationalized-banks-could-have-a-china-angle/

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