# China is weakening its currency before US trade talks begin

> The PBOC set its yuan reference rate at 6.3670 per dollar, weaker than analyst expectations, ahead of US Treasury-led trade talks in Beijing. Strategists said the move may give China room to strengthen the currency later in negotiations.

- Date: 2018-05-02 · published 2018-05-02T12:00:00.000Z
- Category: trade · region China · magnitude low
- Page: https://feedsoft.ai/events/65234-china-is-weakening-its-currency-before-us-trade-talks-begin
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

A deliberately weaker yuan raises the dollar cost of US farm imports for Chinese buyers, a bearish factor for US soybean and sorghum demand if sustained.

## Read by commodity

- SOY: bearish ▼
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2019-08-06 | [U.S.-China Trade War Spreads From Tariffs To A Battle Over Currencies : NPR](https://feedsoft.ai/events/5374-u-s-china-trade-war-spreads-from-tariffs-to-a-battle-over-currencies-npr.md) | +0.1% | +1.9% |
| USDCNY | 2018-10-29 | [China & Brazil: Currencies on Diverging Paths?](https://feedsoft.ai/events/62740-china-and-brazil-currencies-on-diverging-paths.md) | -0.8% | +0.1% |
| USDCNY | 2018-08-22 | [China’s global currency aspirations are falling fast](https://feedsoft.ai/events/10043-china-s-global-currency-aspirations-are-falling-fast.md) | -0.6% | +0.0% |
| USDCNY | 2018-06-29 | [Trade Dispute Hits China’s Yuan, Investors](https://feedsoft.ai/events/8536-trade-dispute-hits-china-s-yuan-investors.md) | +0.2% | +2.8% |
| USDCNY | 2019-08-05 | [Yuan devaluation draws new battle lines in US-China trade war \| Trade War \| Al Jazeera](https://feedsoft.ai/events/5373-yuan-devaluation-draws-new-battle-lines-in-us-china-trade-war-trade-war-al.md) | +1.8% | +3.1% |
| SOY | 2018-07-11 | [Why US-China trade war is weakening the South African rand \| CNBC Africa](https://feedsoft.ai/events/64325-why-us-china-trade-war-is-weakening-the-south-african-rand-cnbc-africa.md) | -1.5% | +4.3% |
| SOY | 2019-09-01 | [Yuan fall: Why is China's currency getting weaker?](https://feedsoft.ai/events/57797-yuan-fall-why-is-china-s-currency-getting-weaker.md) | -1.4% | +5.7% |
| SOY | 2019-05-08 | [Trade war: US-China trade battle in charts](https://feedsoft.ai/events/10431-trade-war-us-china-trade-battle-in-charts.md) | +0.0% | +6.4% |

## Sources

- livemint.com: https://www.livemint.com/Politics/D8y6gvM4Gezw6IP595sDlI/China-is-weakening-its-currency-before-US-trade-talks-begin.html

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