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The yuan rose to its strongest level against the dollar since July 16 after the Federal Reserve held rates steady and signalled patience on future hikes. The PBOC set the daily parity at 6.7025 per dollar, and the yuan briefly traded below 6.70 for the first time in six and a half months.
The Dollar Index fell about 0.7% after the Fed statement.
A firmer yuan and weaker dollar reduce the cost of dollar-priced feed imports into China and ease pressure on Chinese buyers, though the effect on feed grain prices is modest.
caixinglobal.comKe BailiJan 31, 2019After 362 past bearish macro events, Chinese Yuan (CNY per USD) moved a median -0.1% over 5 sessions (42% higher; middle half -0.4% to +0.1%), and -0.2% 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.
