Chinese Yuan Climbs 14.70% Against the US Dollar Since 2005

The Chinese yuan is down nearly 1.9% year-to-date against the US dollar in May 2024. However, the yuan experienced a slight surge this week as the USD dipped post the CPI data release. The retail sales fell by 4/10 of a percent making traders believe the Feds would cut rates again.

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The DXY index, which measures the performance of the US dollar shows the currency falling to 104.22 on Thursday. That’s a significant drop from a high of 107.10 this year to 104.22 in a month. Leading local currencies like the Chinese yuan recovered briefly as the US dollar weakened this week.

In addition, the US jobs data shows a decline as employers created 173,000 jobs in April 2024, which is below the expected average of 243.000. All these developments pull the USD down making local currencies move ahead in the indices. The USD now remains under pressure as several factors are pulling it down in the charts.

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Since 2005, The Chinese Yuan Has Surged 14.70% vs the US Dollar

While the Chinese yuan is down against the US dollar this year, it has steadily challenged the USD since 2005. From the time the Chinese economy turned global by producing and supplying affordable goods, the yuan has stepped up on the international stage.

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The latest data shows that the Chinese yuan has grown a staggering 14.70% against the US dollar since 2005. That’s a steady growth of approximately 1.29% every year in the last 19 years. The yuan has steadily yet sustainably climbed against the USD in the foreign exchange market.

The Chinese yuan has a robust long-term goal of moving ahead of the USD in the coming decades. However, whether the ideas to boost the yuan will play out as planned or falter, only time will answer.