The Chinese yuan saw a rise against the U.S. dollar while the latter experienced a decline. However, despite the yuan's strength, it was ultimately limited due to a surge in dollar demand from oil companies and importers, according to traders. This trend illustrates the complex relationship between the two currencies and the many factors that play into their fluctuation.
1. The Chinese yuan strengthened against the U.S. dollar.
2. The U.S. dollar experienced a decline.
3. Increased demand for U.S. dollars came from oil companies.
4. Increased demand for U.S. dollars came from importers.
5. The complex relationship between the two currencies affects their fluctuation.
In 2020, the Chinese yuan hit its highest annual average level against the U.S. dollar in over six years.
According to traders, the Chinese yuan experienced a boost against a weaker U.S. dollar, although its strength was limited by an increased demand for dollars from both oil companies and importers.