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China's yuan touched a near four-year high against the dollar and a 6.5-year high against its trade-weighted basket. The PBOC set its daily midpoint at 6.3246 per dollar, the firmest since April 2018, and stayed largely silent while pre-holiday corporate demand supported the currency.
A firmer yuan lowers the local-currency cost of dollar-priced imports such as soybeans and meal, which can modestly support Chinese import demand. The effect on grain prices is limited because the move is driven mainly by currency flows.
asiafinancial.comGeorge RussellJan 26, 2022After 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.
