Chinese Yuan Weakens Against the US Dollar Over Fears of Coronavirus Epidemic - Forex News by FX Leaders
Chinese Yuan Weakens Against the US Dollar Over Fears of Coronavirus Epidemic

Chinese Yuan Weakens Against the US Dollar Over Fears of Coronavirus Epidemic

Posted Wednesday, January 22, 2020 by
Arslan Butt • 1 min read

The optimism around the US-China phase one trade deal has faded and the Chinese yuan has weakened against the US dollar over rising fears of an outbreak of coronavirus epidemic impacting China’s economic growth. At the time of writing, USD/CNH is trading at around 6.900.

The number of affected patients across major Chinese cities like Beijing and Shanghai have increased significantly while more cases were being reported outside China, in locations including the US. In the previous session, the yuan lost around 0.55% of its value over concerns that the epidemic may spread severely.

Ahead of the upcoming Chinese New Year holidays, the threat of the virus spreading has increased significantly, as this is a key period for travel in and out of China. Markets remain worried that the outbreak could turn out to be as severe as the SARS outbreak in 2002-03 which had caused a slowdown in tourism across Asia and affected economic growth in the region.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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