# What Is China Trying to Do With Its Currency?    - WSJ

> The yuan has been weakening faster than expected as the dollar surges, raising fears of accelerated capital outflows. The central bank is diluting the dollar's role in the currency basket used to set the yuan's daily rate.

- Date: 2016-12-29 · published 2016-12-29T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/73691-what-is-china-trying-to-do-with-its-currency-wsj
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Persistent yuan weakness and capital outflow risk could slow Chinese demand for dollar-priced imports, a bearish factor for feed commodities.

## Read by commodity

- DXY: bullish ▲
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2019-04-30 | [China is letting its currency decline in a 'snub' to Trump, ING says](https://feedsoft.ai/events/59802-china-is-letting-its-currency-decline-in-a-snub-to-trump-ing-says.md) | +0.4% | +2.6% |
| USDCNY | 2018-10-26 | [China says it will do battle with speculators betting against its currency](https://feedsoft.ai/events/62768-china-says-it-will-do-battle-with-speculators-betting-against-its-currency.md) | -0.4% | -0.1% |
| USDCNY | 2019-06-11 | [Why ‘cracking seven’ is a big deal for China’s currency](https://feedsoft.ai/events/58820-why-cracking-seven-is-a-big-deal-for-china-s-currency.md) | -0.1% | -0.6% |
| USDCNY | 2022-05-13 | [China’s currency just had its worst month ever. It’s still dropping](https://feedsoft.ai/events/9855-china-s-currency-just-had-its-worst-month-ever-it-s-still-dropping.md) | -1.1% | -1.1% |
| USDCNY | 2018-08-24 | [What's really going on with China's economy?](https://feedsoft.ai/events/10041-what-s-really-going-on-with-china-s-economy.md) | -0.5% | -0.3% |
| DXY | 2018-08-24 | [What's really going on with China's economy?](https://feedsoft.ai/events/10041-what-s-really-going-on-with-china-s-economy.md) | -0.0% | -0.5% |
| DXY | 2016-11-18 | [Euro record losing streak: what's behind the drop in the single currency?](https://feedsoft.ai/events/74036-euro-record-losing-streak-what-s-behind-the-drop-in-the-single-currency.md) | +1.0% | +1.3% |
| DXY | 2018-06-22 | [Why the Aussie dollar is plummeting, and what to do](https://feedsoft.ai/events/64776-why-the-aussie-dollar-is-plummeting-and-what-to-do.md) | +0.2% | -0.3% |

## Sources

- wsj.com: https://www.wsj.com/articles/what-is-china-trying-to-do-with-its-currency-1483032452

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