# Trump trouble lifts Mexican peso; yuan briefly hits 6-yr low

> China's yuan touched a six-year low past the 6.7 per dollar threshold after the People's Bank of China set its weakest daily guidance rate since September 2010. The currency recovered some losses on the first trading day after the week-long holiday. The Mexican peso strengthened on the same day as investors reacted to political trouble for Donald Trump.

- Date: 2016-10-10 · published 2016-10-10T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/5887-trump-trouble-lifts-mexican-peso-yuan-briefly-hits-6-yr-low
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

A weaker yuan can make Chinese buyers less willing to pay up for imported feed grains and meal, which weighs on import demand. The peso's gain makes Mexican-priced feed imports slightly cheaper.

## Read by commodity

- USDCNY: bullish ▲
- USDMXN: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2016-10-11 | 1 | +0.8% | 5.7 | The PBoC set its weakest fixing since 2010 on the first trading day after the holiday and the yuan broke past 6.70 per dollar, which directly explains the 1-day move to 2016-10-11. |
| USDCNY | 2016-10-17 | 5 | +1.0% | 2.8 | The PBoC set its weakest fixing since 2010 and the yuan broke past 6.70 per dollar after the holiday, directly driving the USD/CNY rise in this window. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2021-10-28 | [China's yuan briefly crosses key 6.4/dlr level to hit 1-week low \| Financial Post](https://feedsoft.ai/events/44774-china-s-yuan-briefly-crosses-key-6-4-dlr-level-to-hit-1-week-low-financial-post.md) | +0.2% | +0.0% |
| USDCNY | 2016-10-13 | [Dollar stalls, yuan hits 6-year low on Chinese trade dip](https://feedsoft.ai/events/5888-dollar-stalls-yuan-hits-6-year-low-on-chinese-trade-dip.md) | +0.3% | +0.9% |
| USDCNY | 2024-12-03 | [China’s yuan hits lowest level in months as Trump tariff threats roil currencies \| South China Morning Post](https://feedsoft.ai/events/27171-china-s-yuan-hits-lowest-level-in-months-as-trump-tariff-threats-roil.md) | -0.2% | +0.4% |
| USDCNY | 2024-05-30 | [Yuan Hits Six-Month Low Amid Dollar Surge - Finimize](https://feedsoft.ai/events/30493-yuan-hits-six-month-low-amid-dollar-surge-finimize.md) | -0.0% | +0.3% |
| USDCNY | 2023-06-13 | [China cuts key policy rate as post-Covid recovery fizzles; yuan hits 6-month low](https://feedsoft.ai/events/35715-china-cuts-key-policy-rate-as-post-covid-recovery-fizzles-yuan-hits-6-month-low.md) | +0.5% | +0.3% |

## Sources

- reuters.com: https://www.reuters.com/article/emerging-markets-idUSL8N1CG1IH/?feedName=usDollarRpt&feedType=RSS

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