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RMB Exchange Rate Hit 1 And A Half Months Low

2010/8/14 9:32:00 80

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According to "China Securities Journal" reported that overnight strong dollar triggered the central parity of RMB against the U.S. dollar hit 12 and a half month low.

Some traders believe that the RMB exchange rate fell sharply today, mainly due to the overnight rise of the US dollar and the RMB's reference to a basket of currencies floating.

The strong phasing of the US dollar triggered by rising risk aversion may lead to global capital returning to the US and negatively affecting the capital market.

Exchange rate

Innovation low

Affected by the overnight rise of US dollar, the RMB against the US dollar and the spot exchange rate both hit a new month's low for 12 months.

The people's Bank of China authorized the China foreign exchange trading center to announce that on the 12 day, the intermediate price of the US dollar exchange rate in the inter-bank foreign exchange market was RMB 1 yuan to RMB 6.8015 yuan, and the spot market opened at 6.7958 yuan.

Some traders think today

RMB

The sharp drop in the exchange rate was mainly due to the overnight rise of the US dollar and the floating of the renminbi in reference to a basket of currencies.

The US dollar index rebounded strongly on the 11 day, up 1.94%.

After the Fed acknowledged that the economic recovery was in poor condition, the published economic data showed that the US trade deficit unexpectedly expanded and the Asian economic growth slowed down, which aggravated investors' worries about the global economic situation, and the risk aversion funds favored the US dollar again.

In addition, analysts believe that the current international dollar is strong, in addition to investors worried about the slowdown in the US and global economic growth, investors in the eurozone after the release of all kinds of positive factors are also one of the reasons for the strengthening of the US dollar.

On the 12 day, the central parity of RMB opened at a low price, reflecting the more reference of the RMB exchange rate to a basket of currencies, and the characteristics of two-way fluctuations, reflecting the intention of the central bank to restart the exchange rate reform.

Xia Bin, member of the monetary policy committee of the people's Bank of China, said in Taipei on 12 July that the fall in the renminbi is a normal trend and a part of the floating exchange rate policy.

However, from

market

Performance shows that the spot market RMB has not reached the low level of the middle price after opening, indicating that investors are more cautious when the yuan is expected to rise.

On the 12 day spot market, the spot exchange rate of RMB dropped to 6.7986 after opening, and then rebounded, closing at 6.7851, down 0.15% from the previous trading day.