The relationship between India and China has been progressing economically, despite tensions over border issues. However, the Chinese yuan has fallen to a six-month low due to economic slowdowns and the emergence of a new COVID-19 variant. Meanwhile, India's economic data has been encouraging, with manufacturing and service in expansionary modes, and the rupee performing consistently. While India's dependence on Chinese imports remains high, a weaker yuan benefits Indian importers, yet erodes profit margins for exporters. Overall, the CNYINR pair is expected to move southward toward 11.20 levels in the upcoming weeks.