# Across The Border | China’s huge currency rally could have further to go, analysts say | South China Morning Post

> The yuan has appreciated nearly 2 percent against the dollar in the week, reaching its strongest level since December 2015 onshore. Analysts attributed the rally to bearish dollar sentiment, tighter capital controls and expectations that Beijing will stabilise the currency before the 19th Party Congress.

- Date: 2017-09-08 · published 2017-09-08T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/7798-across-the-border-china-s-huge-currency-rally-could-have-further-to-go-analysts
- 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 stronger yuan lowers the local-currency cost of imported soybeans and other feed inputs, which can support Chinese buying. The gain is driven mainly by currency sentiment rather than a change in feed supply or demand.

## Read by commodity

- DXY: bearish ▼
- USDCNY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2017-09-08 | 5 | -1.7% | -3.6 | Attributes the rally to bearish dollar sentiment, tight capital controls and expected stabilization before the Party Congress, which are the demand-side drivers. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2023-07-21 | [China’s yuan: will economic recovery lift currency out of the jungle after Fed effect fades? \| South China Morning Post](https://feedsoft.ai/events/35261-china-s-yuan-will-economic-recovery-lift-currency-out-of-the-jungle-after-fed.md) | -0.0% | +1.6% |
| USDCNY | 2019-07-31 | [Opinion \| Why China may be ready for a strong yuan, and the US could follow up with a weak dollar policy \| South China Morning Post](https://feedsoft.ai/events/58328-opinion-why-china-may-be-ready-for-a-strong-yuan-and-the-us-could-follow-up.md) | +2.0% | +4.0% |
| USDCNY | 2020-08-28 | [Why the yuan could soon shake off its sluggishness against the US dollar \| South China Morning Post](https://feedsoft.ai/events/51839-why-the-yuan-could-soon-shake-off-its-sluggishness-against-the-us-dollar-south.md) | -0.7% | -1.0% |
| USDCNY | 2019-09-26 | [China sells 10 billion yuan of bills in Hong Kong to protect currency ahead of National Day, US trade war talks \| South China Morning Post](https://feedsoft.ai/events/57292-china-sells-10-billion-yuan-of-bills-in-hong-kong-to-protect-currency-ahead-of.md) | +0.2% | -0.9% |
| USDCNY | 2017-09-06 | [China's yuan has fully recovered from 2016 and analysts say there's still room to run](https://feedsoft.ai/events/9415-china-s-yuan-has-fully-recovered-from-2016-and-analysts-say-there-s-still-room.md) | -0.0% | +1.8% |
| DXY | 2017-12-26 | [Macroscope \| Why 2018 could be the year of the euro \| South China Morning Post](https://feedsoft.ai/events/67682-macroscope-why-2018-could-be-the-year-of-the-euro-south-china-morning-post.md) | -1.3% | -3.6% |
| DXY | 2017-08-21 | [Macroscope \| How to read the outlook for the US dollar \| South China Morning Post](https://feedsoft.ai/events/69641-macroscope-how-to-read-the-outlook-for-the-us-dollar-south-china-morning-post.md) | -0.6% | -1.3% |
| DXY | 2017-09-29 | [Can the US dollar make a comeback? \| South China Morning Post](https://feedsoft.ai/events/69153-can-the-us-dollar-make-a-comeback-south-china-morning-post.md) | +0.3% | +1.7% |

## Sources

- scmp.com: https://www.scmp.com/business/companies/article/2110328/chinas-yuan-extends-rally-against-us-dollar-more-gains-likely

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