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The People's Bank of China is letting the yuan drift lower, and it dipped to a 12-month low of 6.8 per dollar on Friday. The move follows US tariffs of 25 percent on $34 billion of Chinese goods, with analysts attributing the decline mainly to slowing growth and diverging interest rate policy.
A weaker yuan offsets tariff costs for Chinese exporters but makes dollar-priced US imports more expensive, which tends to reduce demand for US soybeans and other feed commodities.
seattletimes.comJOE McDONALDJul 20, 2018After 398 past bullish macro events, Chinese Yuan (CNY per USD) moved a median +0.0% over 5 sessions (56% higher; middle half -0.3% to +0.5%), and +0.0% 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.
