# US dollar strength has ‘reached peak’, China’s central bank says, as Fed considers scaling back rate hikes | South China Morning Post

> A China Financial News article published by the central bank said the current round of U.S. dollar appreciation has reached its peak with limited upside. The yuan hit a two-week high after Fed Chair Powell said rate increases could be scaled back as soon as December. The article cited record outflows from Chinese assets as context.

- Date: 2022-12-01 · published 2022-12-01T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/6579-us-dollar-strength-has-reached-peak-china-s-central-bank-says-as-fed-considers
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Expectations of slower U.S. rate hikes weaken the dollar, which supports dollar-priced commodities and eases pressure on Chinese importers. The impact depends on whether the Fed actually slows its pace.

## Read by commodity

- DXY: bearish ▼
- USDCNY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2022-12-05 | 5 | -3.4% | -4.8 | Powell's signal of scaled-back rate hikes and the PBoC view that dollar strength had peaked lifted the yuan to a two-week high, contributing to the fall in CNY per USD. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2017-09-29 | [Can the US dollar make a comeback? \| South China Morning Post](https://feedsoft.ai/events/69153-can-the-us-dollar-make-a-comeback-south-china-morning-post.md) | +0.3% | +1.7% |
| DXY | 2022-12-05 | [China’s yuan strengthens past 7 per US dollar amid easing of coronavirus curbs \| South China Morning Post](https://feedsoft.ai/events/6581-china-s-yuan-strengthens-past-7-per-us-dollar-amid-easing-of-coronavirus-curbs.md) | +0.3% | +0.1% |
| DXY | 2017-08-21 | [Macroscope \| How to read the outlook for the US dollar \| South China Morning Post](https://feedsoft.ai/events/69641-macroscope-how-to-read-the-outlook-for-the-us-dollar-south-china-morning-post.md) | -0.6% | -1.3% |
| DXY | 2024-08-05 | [As stock sell-off sweeps Asia, China’s yuan surges as US rate cuts loom \| South China Morning Post](https://feedsoft.ai/events/7430-as-stock-sell-off-sweeps-asia-china-s-yuan-surges-as-us-rate-cuts-loom-south.md) | -0.4% | -0.9% |
| DXY | 2024-09-13 | [US dollar’s weakness among reasons for strengthening baht, says BOT](https://feedsoft.ai/events/28599-us-dollar-s-weakness-among-reasons-for-strengthening-baht-says-bot.md) | -0.9% | +0.5% |
| USDCNY | 2025-09-06 | [China’s yuan rallies with central bank backing as worries mount over US dollar \| South China Morning Post](https://feedsoft.ai/events/23115-china-s-yuan-rallies-with-central-bank-backing-as-worries-mount-over-us-dollar.md) | -0.1% | -0.2% |
| USDCNY | 2016-11-28 | [China’s central bank talks up the yuan against US dollar ‘uncertainties’ \| South China Morning Post](https://feedsoft.ai/events/74062-china-s-central-bank-talks-up-the-yuan-against-us-dollar-uncertainties-south.md) | -0.5% | +0.4% |
| USDCNY | 2022-12-05 | [China’s yuan strengthens past 7 per US dollar amid easing of coronavirus curbs \| South China Morning Post](https://feedsoft.ai/events/6581-china-s-yuan-strengthens-past-7-per-us-dollar-amid-easing-of-coronavirus-curbs.md) | -0.9% | -1.5% |

## Sources

- scmp.com: https://www.scmp.com/economy/economic-indicators/article/3201713/us-dollar-strength-has-reached-peak-chinas-central-bank-says-fed-considers-scaling-back-rate-hikes

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