# China crushes yuan bears, snubs Moody's as currency takes off

> The yuan rose to its highest level in seven months offshore, extending a 1.2% gain on Wednesday despite analyst forecasts for declines. The rally came a week after Moody's downgraded China's sovereign debt rating, which Beijing called groundless. Surging interbank rates raised the cost of short positions and squeezed bears.

- Date: 2017-06-01 · published 2017-06-01T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/8835-china-crushes-yuan-bears-snubs-moody-s-as-currency-takes-off
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A stronger yuan makes Chinese feed and commodity imports cheaper in local currency, which can support Chinese buying of soybeans, corn and meal. Authorities defending the currency also signal a firmer policy stance that reduces depreciation risk for importers.

## Read by commodity

- USDCNY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2017-06-01 | 5 | -1.2% | -3.7 | Surging interbank rates raised short-selling costs and squeezed bears, producing a seven-month yuan high offshore. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2024-08-23 | [After battle with yuan bears, China is now keen to avoid sharp currency gains](https://feedsoft.ai/events/29022-after-battle-with-yuan-bears-china-is-now-keen-to-avoid-sharp-currency-gains.md) | -0.7% | -1.3% |
| USDCNY | 2022-01-26 | [China's Currency Hits Four-Year High as PBOC Stands Back](https://feedsoft.ai/events/6265-china-s-currency-hits-four-year-high-as-pboc-stands-back.md) | +0.6% | -0.2% |
| USDCNY | 2020-01-14 | [Yuan rises as US lifts China’s currency manipulator label – Asian market latest \| CNN Business](https://feedsoft.ai/events/55310-yuan-rises-as-us-lifts-china-s-currency-manipulator-label-asian-market-latest.md) | +0.2% | +1.1% |
| USDCNY | 2025-06-30 | [China Adjusts Yuan Midpoint Amid Currency Pressures - Reuters \| HROne](https://feedsoft.ai/events/24429-china-adjusts-yuan-midpoint-amid-currency-pressures-reuters-hrone.md) | +0.0% | +0.1% |
| USDCNY | 2023-08-21 | [EXCLUSIVE: China state banks seen mopping up offshore yuan to stem currency weakness \| Reuters](https://feedsoft.ai/events/34803-exclusive-china-state-banks-seen-mopping-up-offshore-yuan-to-stem-currency.md) | +0.1% | +0.2% |

## Sources

- livemint.com: https://www.livemint.com/Money/V8vGtWIgC1XkMgDFKSVCYO/China-crushes-yuan-bears-snubs-Moodys-as-currency-takes-of.html

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