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The yuan's central parity rate strengthened for a tenth consecutive working day to 6.5032 per dollar, its strongest level since May 2016. The dollar index fell 0.5 percent to 91.21 as long-dated Treasury yields hit 10-month lows, and Chinese officials attributed the gain to solid fundamentals and stable capital flows.
A stronger yuan and weaker dollar lower the local-currency cost of dollar-priced feed imports, which can support Chinese buying. The move is a currency-driven market update without a new change in feed supply.
en.people.cnF_200804Sep 8, 2017After 362 past bearish macro events, Chinese Yuan (CNY per USD) moved a median -0.1% over 5 sessions (42% higher; middle half -0.4% to +0.1%), and -0.2% over 20.
After 1,637 past bearish macro events, US Dollar (Broad) moved a median -0.2% over 5 sessions (39% higher; middle half -0.6% to +0.3%), and -0.2% 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.
A tenth consecutive stronger fix and a falling dollar index with lower Treasury yields supported the yuan's gains during the week.
A tenth straight stronger fixing and a weaker dollar index on 2017-09-08 set the momentum and starting level going into the 09-11 move.
