# Hedging plays turning won into yuan proxy - Asia Times

> Analysis describes how the won fell to near 1,200 per dollar in May as the US-China trade war intensified, with the currency moving in step with the yuan. Investors buying yuan assets use won derivatives to hedge, making the won a yuan proxy.

- Date: 2019-06-24 · published 2019-06-24T12:00:00.000Z
- Category: trade · region China · magnitude low
- Page: https://feedsoft.ai/events/58826-hedging-plays-turning-won-into-yuan-proxy-asia-times
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Korean Won (KRW per USD)](https://feedsoft.ai/c/USDKRW.md)

## Why it matters

Currency-driven swings in Korean demand and yuan hedging flows add uncertainty to China's import appetite for feed commodities.

## Read by commodity

- USDCNY: bullish ▲
- USDKRW: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2018-07-31 | [US dollar pressures yuan, Australian dollar on tariff reports - The Business Times](https://feedsoft.ai/events/64306-us-dollar-pressures-yuan-australian-dollar-on-tariff-reports-the-business-times.md) | +0.6% | +0.1% |
| USDCNY | 2019-08-05 | [China lets yuan break key 7 level for first time in decade as trade war worsens](https://feedsoft.ai/events/5368-china-lets-yuan-break-key-7-level-for-first-time-in-decade-as-trade-war-worsens.md) | +1.8% | +3.1% |
| USDCNY | 2025-02-28 | [USD/CNH: Testing 7.3000 as Yuan Faces Fresh Tariff Headwinds](https://feedsoft.ai/events/26297-usd-cnh-testing-7-3000-as-yuan-faces-fresh-tariff-headwinds.md) | -0.5% | -0.3% |
| USDCNY | 2025-02-28 | [China’s yuan falls to 2-week low after Trump proposes extra tariffs on Chinese exports](https://feedsoft.ai/events/26290-china-s-yuan-falls-to-2-week-low-after-trump-proposes-extra-tariffs-on-chinese.md) | -0.5% | -0.3% |
| USDCNY | 2019-06-22 | [Goldman Sachs says to short Chinese yuan ahead of the G20 meeting next week](https://feedsoft.ai/events/9814-goldman-sachs-says-to-short-chinese-yuan-ahead-of-the-g20-meeting-next-week.md) | -0.1% | +0.2% |

## Sources

- asiatimes.com: https://asiatimes.com/2019/06/korean-won-falls-sharply-against-dollar-in-may/

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