# Light PBOC touch makes once unlikely yuan at 7/$ seem possible

> The yuan has lost more than 2.5% against the dollar since the China-U.S. trade dispute worsened with tariff increases early in May. It now sits less than 0.1 yuan from the 7-per-dollar level that authorities have previously signaled as a floor. A weaker yuan risks capital outflows, which policymakers are concerned about.

- Date: 2019-05-24 · published 2019-05-24T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/59275-light-pboc-touch-makes-once-unlikely-yuan-at-7-seem-possible
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A weaker yuan makes Chinese exports cheaper and can offset some tariff impact, but a break below 7 could spur capital flight and weigh on emerging-market currencies, affecting Chinese feed demand sentiment and import purchasing power.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2023-06-21 | [Yuan (CNY USD) Drops to Key 7.2 Level on Slow Stimulus, PBOC Greenlight - Bloomberg](https://feedsoft.ai/events/11231-yuan-cny-usd-drops-to-key-7-2-level-on-slow-stimulus-pboc-greenlight-bloomberg.md) | +0.5% | +0.6% |
| USDCNY | 2022-05-11 | [How PBOC might respond to China's weakening yuan](https://feedsoft.ai/events/10987-how-pboc-might-respond-to-china-s-weakening-yuan.md) | +0.0% | -0.8% |
| USDCNY | 2016-11-22 | [Chinese Yuan Fix 'Encourages Capital Flight': Ex-PBOC Policymaker \| Fortune](https://feedsoft.ai/events/74064-chinese-yuan-fix-encourages-capital-flight-ex-pboc-policymaker-fortune.md) | +0.0% | +0.8% |
| USDCNY | 2024-02-20 | [Onshore yuan trades at its weakest against dollar since November last year](https://feedsoft.ai/events/31900-onshore-yuan-trades-at-its-weakest-against-dollar-since-november-last-year.md) | +0.1% | +0.1% |
| USDCNY | 2018-11-01 | [China’s Yuan Drops to a Decade-Low, 7 Per Dollar Now in Sight](https://feedsoft.ai/events/62762-china-s-yuan-drops-to-a-decade-low-7-per-dollar-now-in-sight.md) | -0.8% | -0.3% |

## Sources

- reuters.com: https://www.reuters.com/article/us-china-markets-yuan-analysis/light-pboc-touch-makes-once-unlikely-yuan-at-7-seem-possible-idUSKCN1SU0RN/?feedName=businessNews&feedType=RSS

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