# Fed rate hike has effect on forex trading in China - CGTN

> The PBOC held its benchmark rates steady after the Fed's third rate hike of the year, while Hong Kong raised its base lending rate to keep its currency peg steady. The PBOC also set the yuan daily midpoint fixing 71 basis points lower.

- Date: 2018-09-28 · published 2018-09-28T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/63268-fed-rate-hike-has-effect-on-forex-trading-in-china-cgtn
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Divergence between US and Chinese rates affects capital flows and currency values, which in turn influence the cost of dollar-priced US feed commodities for Chinese importers.

## Read by commodity

- DXY: bullish ▲
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2022-05-05 | [US Fed rate hike: how can China stem capital outflow and prop up the yuan? \| South China Morning Post](https://feedsoft.ai/events/8315-us-fed-rate-hike-how-can-china-stem-capital-outflow-and-prop-up-the-yuan-south.md) | +1.7% | +0.8% |
| USDCNY | 2018-09-03 | [Trade war could force heavier hand from China on yuan](https://feedsoft.ai/events/63264-trade-war-could-force-heavier-hand-from-china-on-yuan.md) | +0.4% | +0.6% |
| USDCNY | 2023-06-14 | [Diverging rates outlook has China's yuan eying 2022 lows](https://feedsoft.ai/events/35712-diverging-rates-outlook-has-china-s-yuan-eying-2022-lows.md) | +0.3% | -0.1% |
| USDCNY | 2022-08-29 | [China's Yuan Drops Below Key 6.9 USD Mark on Fed Rate Stance](https://feedsoft.ai/events/40260-china-s-yuan-drops-below-key-6-9-usd-mark-on-fed-rate-stance.md) | +0.4% | +3.9% |
| USDCNY | 2018-10-29 | [China's yuan finishes onshore trading at weakest since 2008 By Reuters](https://feedsoft.ai/events/62763-china-s-yuan-finishes-onshore-trading-at-weakest-since-2008-by-reuters.md) | -0.8% | +0.1% |
| DXY | 2018-09-29 | [Fed rate hike won’t have much impact on Việt Nam](https://feedsoft.ai/events/63320-fed-rate-hike-won-t-have-much-impact-on-viet-nam.md) | +0.7% | +1.8% |
| DXY | 2022-02-10 | [Hot inflation fuels case for 'big-bang' Fed rate hike in March](https://feedsoft.ai/events/42644-hot-inflation-fuels-case-for-big-bang-fed-rate-hike-in-march.md) | -0.1% | +1.7% |
| DXY | 2022-10-31 | [Dollar gains on Fed rate hike expectations](https://feedsoft.ai/events/39325-dollar-gains-on-fed-rate-hike-expectations.md) | -0.1% | -2.8% |

## Sources

- news.cgtn.com: https://news.cgtn.com/news/3d3d674e3041544e7a457a6333566d54/index.html

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