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The People's Bank of China set the yuan's daily central parity stronger than the previous close for a ninth straight trading day, after the yuan hit its lowest level against the dollar in eight months. The move followed Beijing's plan to impose a national security law on Hong Kong, which Washington said ends the city's autonomy from the mainland.
A firmer yuan fix lowers the cost of dollar-denominated imports for China, which supports demand for US and Brazilian feed ingredients priced in dollars. Continued state intervention limits near-term yuan weakness, but tensions could still reverse it.
scmp.comCissy ZhouMay 29, 2020After 10 past bearish geopolitics events, Chinese Yuan (CNY per USD) moved a median -0.3% over 5 sessions (40% higher; middle half -0.5% to +0.2%), and -0.8% 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.
