# Yuan slips to 6-month low, outlook bearish amid trade friction

> The yuan weakened past the 6.6 per dollar level for the first time in six months, though it recovered some losses by midday. The PBOC lowered its yuan midpoint for a sixth straight day to 6.5569, its weakest fix since late December. Analysts said the central bank appears willing to allow moderate depreciation amid an escalating Sino-U.S. trade dispute.

- Date: 2018-06-27 · published 2018-06-27T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/8531-yuan-slips-to-6-month-low-outlook-bearish-amid-trade-friction
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A sustained weaker yuan raises the dollar cost of US agricultural imports for China, which can reduce purchasing and weigh on soybean and meal prices. The move also reflects rising trade-war risk that could curb Chinese feed demand.

## Read by commodity

- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2018-06-28 | 5 | +2.1% | 3.8 | The PBOC weakened its midpoint fix for a sixth straight day and the yuan broke past 6.6 per dollar, signaling tolerance for depreciation and driving USD/CNY higher. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2022-05-09 | [Chinese Yuan Slips To An 18-Month Low - Asia Financial News](https://feedsoft.ai/events/8317-chinese-yuan-slips-to-an-18-month-low-asia-financial-news.md) | +1.8% | -0.2% |
| USDCNY | 2024-05-30 | [Yuan Hits Six-Month Low Amid Dollar Surge - Finimize](https://feedsoft.ai/events/30493-yuan-hits-six-month-low-amid-dollar-surge-finimize.md) | -0.0% | +0.3% |
| USDCNY | 2024-03-22 | [China yuan slides to four-month low, state banks step in \| Reuters](https://feedsoft.ai/events/31441-china-yuan-slides-to-four-month-low-state-banks-step-in-reuters.md) | +0.4% | +0.5% |
| USDCNY | 2021-06-17 | [Yuan eases to 3-week low after Fed takes more hawkish outlook - Markets - Business Recorder](https://feedsoft.ai/events/7119-yuan-eases-to-3-week-low-after-fed-takes-more-hawkish-outlook-markets-business.md) | +1.2% | +1.0% |
| USDCNY | 2018-07-30 | [China's yuan hits 13-month low on weaker fixing and depreciation bets](https://feedsoft.ai/events/64266-china-s-yuan-hits-13-month-low-on-weaker-fixing-and-depreciation-bets.md) | +0.3% | -0.1% |

## Sources

- cnbc.com: https://www.cnbc.com/2018/06/27/yuan-slips-to-6-month-low-outlook-bearish-amid-trade-friction.html

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