The Sept 12 FX tape: USD/CNY at 6.7114, up 0.0865 on the day; EUR/USD slipped to 1.1598; USD/JPY at 153.54 and USD/KRW at 1341.46 both moved lower. This dollar pullback is landing hardest on Asian currencies.

For SNSUC's transshipment book, a stronger yuan lowers the renminbi equivalent of dollar-denominated crude purchases, and when dollar quotes to Southeast Asian or Middle Eastern buyers stay flat, the renminbi margin widens on its own. The flip side: a weaker won and yen raise the CNY landed cost of rubber and plastics imported from Northeast Asia.

In practice, any dollar long-term contract signed now needs a currency look-back clause, or settle through cross-border RMB (CIPS) to lock the 6.71 handle. Otherwise, if 6.71 turns into 6.85 at settlement three months out, the entire freight spread is given back.