# China’s PBOC Braces for Weaker Yuan as Fed Plans Tapering - Bloomberg

> The People's Bank of China is working to contain a weakening yuan after the currency fell by the most since March. The slide follows Fed forecasts pointing to earlier U.S. interest rate increases, which strengthened the dollar.

- Date: 2021-06-17 · published 2021-06-17T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/7116-china-s-pboc-braces-for-weaker-yuan-as-fed-plans-tapering-bloomberg
- 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 weaker yuan lowers the dollar cost of Chinese purchases of feed grains and meal, which can slow import demand and soften U.S. feed commodity prices at the margin.

## Read by commodity

- DXY: bullish ▲
- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2021-06-17 | 1 | +0.8% | 4.5 | Reports of the yuan's biggest fall since March after the Fed's earlier-hike signals confirm a dollar-strength driver and PBOC efforts to contain the depreciation. |
| USDCNY | 2021-06-23 | 5 | +1.2% | 2.9 | The yuan fell the most since March on Fed tightening expectations, and PBOC efforts to contain the slide confirm the dollar-driven depreciation pressure. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2016-11-16 | [China’s Yuan Tumbles to Eight-Year Low as Banks Weaken Forecasts - Bloomberg](https://feedsoft.ai/events/7741-china-s-yuan-tumbles-to-eight-year-low-as-banks-weaken-forecasts-bloomberg.md) | +0.5% | +0.7% |
| USDCNY | 2016-06-27 | [China Weakens Yuan Fixing by Most Since August as Dollar Surges - Bloomberg](https://feedsoft.ai/events/12454-china-weakens-yuan-fixing-by-most-since-august-as-dollar-surges-bloomberg.md) | +0.6% | +1.0% |
| USDCNY | 2022-10-25 | [China’s Yuan CNY USD Drops as PBOC Sets Fix at Weakest Level in 14 Years - Bloomberg](https://feedsoft.ai/events/6933-china-s-yuan-cny-usd-drops-as-pboc-sets-fix-at-weakest-level-in-14-years.md) | +0.6% | -1.7% |
| USDCNY | 2024-11-07 | [CNY/USD: China Sets Yuan Fix at Weakest Since 2023 - Bloomberg](https://feedsoft.ai/events/6857-cny-usd-china-sets-yuan-fix-at-weakest-since-2023-bloomberg.md) | +0.7% | +1.3% |
| USDCNY | 2017-01-16 | [Yuan Top Forecaster Sees No End to Losses as China Economy Slows - Bloomberg](https://feedsoft.ai/events/11878-yuan-top-forecaster-sees-no-end-to-losses-as-china-economy-slows-bloomberg.md) | -0.6% | -0.5% |
| DXY | 2016-11-16 | [China’s Yuan Tumbles to Eight-Year Low as Banks Weaken Forecasts - Bloomberg](https://feedsoft.ai/events/7741-china-s-yuan-tumbles-to-eight-year-low-as-banks-weaken-forecasts-bloomberg.md) | +0.6% | -0.0% |
| DXY | 2016-06-27 | [China Weakens Yuan Fixing by Most Since August as Dollar Surges - Bloomberg](https://feedsoft.ai/events/12454-china-weakens-yuan-fixing-by-most-since-august-as-dollar-surges-bloomberg.md) | -0.4% | +0.9% |
| DXY | 2022-09-29 | [CNY/USD: Why China’s Yuan Hit Record Lows Against the Dollar - Bloomberg](https://feedsoft.ai/events/7207-cny-usd-why-china-s-yuan-hit-record-lows-against-the-dollar-bloomberg.md) | -1.0% | -1.1% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2021-06-17/china-s-central-bank-braces-for-weaker-yuan-as-fed-plans-taper

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