Why is China’s Currency Declining?

LTC Eugene Chu
"The Chinese currency is declining rapidly due to concerns about rising lockdowns in major cities, and Beijing’s close ties with Moscow in the wake of Russia’s invasion of Ukraine1. The yuan has fallen more than 4% against the dollar from a January high, when sentiment was still bullish after the country lifted its COVID restrictions last fall2. The yuan's weakness is partly due to the strength of the dollar, which has benefited from confidence in the US economy and the fact that the US Federal Reserve has been raising interest rates gradually3. A weaker yuan makes Chinese exports more competitive, or cheaper to buy with foreign currencies4."...