# Dollar loses shine, yuan jumps after China modifies COVID protocol | Financial Post

> The dollar weakened after US consumer price inflation for October came in below forecasts at 7.7% year-on-year. The yuan jumped after Chinese health authorities eased quarantine rules for close contacts and inbound travelers.

- Date: 2022-11-11 · published 2022-11-11T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/8207-dollar-loses-shine-yuan-jumps-after-china-modifies-covid-protocol-financial-post
- 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 softer dollar and easing of China's zero-COVID rules reduce pressure on emerging-market currencies and improve Chinese buying power for dollar-priced commodities.

## Read by commodity

- DXY: bearish ▼
- USDCNY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2022-11-14 | 5 | -3.1% | -5.3 | Below-forecast US inflation weakened the dollar and the COVID protocol easing lifted the yuan sharply, the main single-day driver of the decline in USD/CNY. |
| USDCNY | 2022-11-14 | 1 | -1.6% | -3.9 | Below-forecast US inflation weakened the dollar and the COVID quarantine easing triggered a yuan jump on Nov 11, the main leg of the move. |
| DXY | 2022-11-14 | 5 | -2.9% | -4.2 | The dollar weakened on soft CPI while the yuan jumped on eased Chinese COVID rules, adding to risk-on dollar selling. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2022-12-05 | [Yuan jumps past 7 per dollar as China eases some COVID curbs](https://feedsoft.ai/events/38449-yuan-jumps-past-7-per-dollar-as-china-eases-some-covid-curbs.md) | -0.9% | -1.5% |
| USDCNY | 2022-06-29 | [China's yuan firms as Beijing eases quarantine rules \| Financial Post](https://feedsoft.ai/events/41167-china-s-yuan-firms-as-beijing-eases-quarantine-rules-financial-post.md) | 0.0% | +0.7% |
| USDCNY | 2019-11-06 | [China sets yuan midpoint at three-month high \| Financial Post](https://feedsoft.ai/events/56292-china-sets-yuan-midpoint-at-three-month-high-financial-post.md) | +0.2% | +0.5% |
| USDCNY | 2023-05-22 | [Yuan bounces from 5-month low after PBOC pledges to keep market stable \| Financial Post](https://feedsoft.ai/events/36180-yuan-bounces-from-5-month-low-after-pboc-pledges-to-keep-market-stable.md) | +0.8% | +2.5% |
| USDCNY | 2019-12-26 | [China lifts yuan midpoint to strongest in 4-1/2 months \| Financial Post](https://feedsoft.ai/events/55801-china-lifts-yuan-midpoint-to-strongest-in-4-1-2-months-financial-post.md) | -0.6% | -1.3% |
| DXY | 2022-12-05 | [Yuan jumps past 7 per dollar as China eases some COVID curbs](https://feedsoft.ai/events/38449-yuan-jumps-past-7-per-dollar-as-china-eases-some-covid-curbs.md) | +0.3% | +0.1% |
| DXY | 2021-06-01 | [Dollar steadies, yuan slips after central bank moves to limit gains \| Financial Post](https://feedsoft.ai/events/46819-dollar-steadies-yuan-slips-after-central-bank-moves-to-limit-gains-financial.md) | -0.2% | +1.1% |
| DXY | 2022-11-15 | [Dollar loses ground after economic data boosts risk appetite \| Financial Post](https://feedsoft.ai/events/7563-dollar-loses-ground-after-economic-data-boosts-risk-appetite-financial-post.md) | +1.0% | -1.3% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/dollar-loses-shine-yuan-jumps-after-china-modifies-covid-protocol

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