# Economic Watch: What's behind RMB's strength? - Xinhua | English.news.cn

> The yuan posted a strong start to 2018, rising 3.1% against the dollar in January, over half of its 5.81% gain for all of 2017. The central parity rate hit 6.3267 on January 29, its strongest level since November 2015. The dollar index fell more than 3% year to date, and Treasury Secretary Mnuchin's remarks that a weaker dollar would help trade added to the move.

- Date: 2018-01-31 · published 2018-01-31T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/67195-economic-watch-what-s-behind-rmb-s-strength-xinhua-english-news-cn
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A firmer yuan and weaker dollar lower the cost of dollar-priced feed imports into China on the margin, while a softer dollar generally supports dollar-priced grain and oilseed prices. Currency moves like this shift the relative competitiveness of Chinese and foreign feed supply.

## Read by commodity

- DXY: bearish ▼
- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2017-12-31 | [Economic Watch: 4 reasons why RMB stood tall in 2017 - Xinhua \| English.news.cn](https://feedsoft.ai/events/67710-economic-watch-4-reasons-why-rmb-stood-tall-in-2017-xinhua-english-news-cn.md) | -0.1% | -2.9% |
| USDCNY | 2018-02-01 | [Chinese yuan strengthens to new high against USD - Xinhua \| English.news.cn](https://feedsoft.ai/events/66716-chinese-yuan-strengthens-to-new-high-against-usd-xinhua-english-news-cn.md) | -0.3% | +1.2% |
| USDCNY | 2017-10-31 | [Chinese yuan strengthens to 6.6397 against USD Tuesday - Xinhua \| English.news.cn](https://feedsoft.ai/events/68676-chinese-yuan-strengthens-to-6-6397-against-usd-tuesday-xinhua-english-news-cn.md) | -0.3% | -0.6% |
| USDCNY | 2019-11-07 | [Chinese yuan strengthens to 7.0008 against USD Thursday - Xinhua \| English.news.cn](https://feedsoft.ai/events/56298-chinese-yuan-strengthens-to-7-0008-against-usd-thursday-xinhua-english-news-cn.md) | +0.3% | +0.5% |
| USDCNY | 2019-02-25 | [News Analysis: Robust yuan points to market confidence in Chinese economy - Xinhua \| English.news.cn](https://feedsoft.ai/events/60808-news-analysis-robust-yuan-points-to-market-confidence-in-chinese-economy-xinhua.md) | -0.1% | +0.1% |
| DXY | 2018-02-01 | [Chinese yuan strengthens to new high against USD - Xinhua \| English.news.cn](https://feedsoft.ai/events/66716-chinese-yuan-strengthens-to-new-high-against-usd-xinhua-english-news-cn.md) | +0.9% | +1.7% |
| DXY | 2018-05-11 | [Chinese yuan strengthens to 6.3524 against USD Friday - Xinhua \| English.news.cn](https://feedsoft.ai/events/65235-chinese-yuan-strengthens-to-6-3524-against-usd-friday-xinhua-english-news-cn.md) | +0.9% | +1.5% |
| DXY | 2022-11-14 | [RMB recovers on economic resilience - Chinadaily.com.cn](https://feedsoft.ai/events/38902-rmb-recovers-on-economic-resilience-chinadaily-com-cn.md) | -0.7% | -1.6% |

## Sources

- xinhuanet.com: http://www.xinhuanet.com/english/2018-01/31/c_136939300.htm

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