Chinese lockdowns have exacerbated the weakness of the yuan. Economists at Commerzbank expect the USD/CNY pair to extend its grind higher.

USD is on strong momentum

“The Chinese currency has been taking a depreciation ride over the past two weeks, and the steep rise of USD/CNY clearly illustrates the concerns on the economy due to lockdowns.”

“As the dollar is on the strong momentum, it makes sense to expect more weakness of the Chinese currency over the foreseeable future.”