# Robust dollar, tumbling yuan underline need for US-China currency deal | South China Morning Post

> A Bloomberg analysis says a strengthening dollar and a weakening yuan are creating cross-currents for global growth. It notes that President-elect Trump has promised tariffs and a currency manipulator label to shrink the US trade deficit with China. Both governments want to avoid a trade war.

- Date: 2016-11-30 · published 2016-11-30T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/74061-robust-dollar-tumbling-yuan-underline-need-for-us-china-currency-deal-south
- 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 dollar strength raise the risk of US-China tariff escalation, which could reduce US farm export demand to China. The currency gap therefore carries an indirect bearish risk for US grain and oilseed prices.

## Read by commodity

- DXY: bullish ▲
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2016-11-14 | [Chinese yuan tumbles to a seven-year low as dollar surges \| South China Morning Post](https://feedsoft.ai/events/7742-chinese-yuan-tumbles-to-a-seven-year-low-as-dollar-surges-south-china-morning.md) | +1.3% | +1.6% |
| USDCNY | 2018-10-31 | [China to sell new yuan bills in Hong Kong – a new tool to control the currency now at a 10-year low \| South China Morning Post](https://feedsoft.ai/events/62764-china-to-sell-new-yuan-bills-in-hong-kong-a-new-tool-to-control-the-currency.md) | -0.7% | -0.4% |
| USDCNY | 2022-05-05 | [US Fed rate hike: how can China stem capital outflow and prop up the yuan? \| South China Morning Post](https://feedsoft.ai/events/8315-us-fed-rate-hike-how-can-china-stem-capital-outflow-and-prop-up-the-yuan-south.md) | +1.7% | +0.8% |
| USDCNY | 2024-12-03 | [China’s yuan hits lowest level in months as Trump tariff threats roil currencies \| South China Morning Post](https://feedsoft.ai/events/27171-china-s-yuan-hits-lowest-level-in-months-as-trump-tariff-threats-roil.md) | -0.2% | +0.4% |
| USDCNY | 2022-09-28 | [Chinese yuan: Currency hits record lows against US dollar - BBC News](https://feedsoft.ai/events/7208-chinese-yuan-currency-hits-record-lows-against-us-dollar-bbc-news.md) | -0.9% | -0.1% |
| DXY | 2016-11-14 | [Chinese yuan tumbles to a seven-year low as dollar surges \| South China Morning Post](https://feedsoft.ai/events/7742-chinese-yuan-tumbles-to-a-seven-year-low-as-dollar-surges-south-china-morning.md) | +1.4% | +0.8% |
| DXY | 2020-04-20 | [Coronavirus boost to the US dollar shows China must do more to win global trust in the renminbi \| South China Morning Post](https://feedsoft.ai/events/53885-coronavirus-boost-to-the-us-dollar-shows-china-must-do-more-to-win-global-trust.md) | +1.1% | +0.6% |
| DXY | 2022-05-05 | [US Fed rate hike: how can China stem capital outflow and prop up the yuan? \| South China Morning Post](https://feedsoft.ai/events/8315-us-fed-rate-hike-how-can-china-stem-capital-outflow-and-prop-up-the-yuan-south.md) | +0.7% | -1.2% |

## Sources

- scmp.com: https://www.scmp.com/business/banking-finance/article/2050680/robust-dollar-tumbling-yuan-underline-need-us-china

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