China’s economy rebounds and interest rate differentials Oct 08, 2020 China’s economy rebounds and interest rate differentials By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group China’s Economy Rebounds, Yuan Strengthens China’s economy rebounds from pandemic fallout. Chinese yuan has rallied against the US dollar. New loans for infrastructure projects fuel the comeback. Chinese demand has helped to rally copper. Watch video Interest Rate Differentials and the Demand for US Dollar Interest rate differentials tend to vary with how they are measured. Measures include central bank, interbank, overnight index swap, and FX rates. FX market tends to show a higher US dollar rate against other currencies. The higher rate in FX markets could be due to global demand for US dollars. Watch video SEE MORE ANNOUNCEMENTS