# Chinese yuan tumbles to a seven-year low as dollar surges | South China Morning Post

> The yuan slid to a seven-year low after the People's Bank of China lowered its reference rate for a seventh consecutive trading day. The decline came as the dollar extended its post-election rally to a one-year high.

- Date: 2016-11-14 · published 2016-11-14T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/7742-chinese-yuan-tumbles-to-a-seven-year-low-as-dollar-surges-south-china-morning
- 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 persistently weaker yuan raises the dollar cost of Chinese imports and signals policy tolerance for depreciation, which can weigh on demand for U.S. feed commodities and support a stronger dollar.

## Read by commodity

- DXY: bullish ▲
- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2016-11-14 | 1 | +0.7% | 4.1 | Same-day report of the yuan sliding to a seven-year low after the PBOC lowered its reference rate for a seventh straight day, directly describing the 14 Nov move via policy-driven currency weakness and dollar strength. |
| USDCNY | 2016-11-14 | 5 | +1.4% | 3.4 | On Nov 14 the yuan hit a seven-year low as the PBOC lowered its reference rate for a seventh straight day and the dollar extended its rally, directly contributing to the end-of-window move. |
| DXY | 2016-11-16 | 5 | +3.1% | 3.9 | The post-election dollar rally extended to a one-year high on 11/14 as the yuan fell, showing broad dollar strength. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2016-11-30 | [Robust dollar, tumbling yuan underline need for US-China currency deal \| South China Morning Post](https://feedsoft.ai/events/74061-robust-dollar-tumbling-yuan-underline-need-for-us-china-currency-deal-south.md) | -0.2% | +0.9% |
| USDCNY | 2016-06-27 | [Update \| Chinese yuan slides to 5-year low, pound slumps further in Brexit aftershock \| South China Morning Post](https://feedsoft.ai/events/12457-update-chinese-yuan-slides-to-5-year-low-pound-slumps-further-in-brexit.md) | +0.6% | +1.0% |
| USDCNY | 2022-04-21 | [China's yuan slides to 6-month low as tightening prospects help dollar \| Financial Post](https://feedsoft.ai/events/7337-china-s-yuan-slides-to-6-month-low-as-tightening-prospects-help-dollar.md) | +2.2% | +5.2% |
| 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 | 2024-06-27 | [China's Yuan Hits Seven-Month Low As Dollar Outflows Persist - Finimize](https://feedsoft.ai/events/30009-china-s-yuan-hits-seven-month-low-as-dollar-outflows-persist-finimize.md) | +0.0% | -0.5% |
| DXY | 2016-11-30 | [Robust dollar, tumbling yuan underline need for US-China currency deal \| South China Morning Post](https://feedsoft.ai/events/74061-robust-dollar-tumbling-yuan-underline-need-for-us-china-currency-deal-south.md) | -0.6% | +1.3% |
| DXY | 2016-06-27 | [Update \| Chinese yuan slides to 5-year low, pound slumps further in Brexit aftershock \| South China Morning Post](https://feedsoft.ai/events/12457-update-chinese-yuan-slides-to-5-year-low-pound-slumps-further-in-brexit.md) | -0.4% | +0.9% |
| DXY | 2022-04-21 | [China's yuan slides to 6-month low as tightening prospects help dollar \| Financial Post](https://feedsoft.ai/events/7337-china-s-yuan-slides-to-6-month-low-as-tightening-prospects-help-dollar.md) | +2.3% | +2.8% |

## Sources

- scmp.com: https://www.scmp.com/business/global-economy/article/2045837/chinese-yuan-tumbles-seven-year-low-dollar-surges

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