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A Bloomberg commentary argues that China's currency remains heavily dependent on the US dollar, with capital leaving the country and new disclosure rules limiting conversions of yuan above $50,000. The yuan has fallen to an eight-year low against the dollar.
Persistent yuan weakness and capital controls can weigh on Chinese import buying power for dollar-priced feed ingredients. The impact on commodity prices is indirect.
bloomberg.comBookmark Save TranslateJan 5, 2017After 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.
