US Dollar To Return To Weak RMB Exchange Rate Is Expected To Temporarily Rest

dollar

US dollar index "stumbling"

On Friday (21), the US dollar index declined in all trading periods on the international foreign exchange market. At the end of the trading day, the US dollar index closed at 78.11 points, dropping 0.91% on a single day.

Before that, the US dollar index suffered more than 1% of a single day's setback on 12 and 13 days in two consecutive trading days.

At this point, the short term strength of the US dollar index in early January was once again verified by the market as "flash in the pan", and the dollar returned to the weak in the international foreign exchange market.

Societe Generale economist Lu political commissar said that the continued decline in the US dollar index is mainly due to the easing of worries about the European debt crisis, and the continued strength of the euro against the US dollar has weakened the US dollar index. It is expected that the weakness of the US dollar will continue in the short run.

However, Lu commissar also pointed out that the US dollar index in the previous period has been wide concussion in the range of 78 to 82 points. After the late US dollar index bottom, it may rebound again near the 78 point.

Xie Dongming, a foreign exchange analyst at OCBC in Singapore, also said that the market's concern over the euro zone debt crisis has pushed up investor optimism. The euro / dollar broke 1.3600 on Friday, including a series of measures including German economic data and the possible expansion of the European financial stability mechanism.

In addition, futures market data also show that more and more investors are starting to do more euros.

Meanwhile, rumors from the market say CIC executives have gone to Spain to discuss with the government about Spanish government bonds.

China's further strong support for European sovereign bonds has also given the market more confidence in the euro.

The RMB exchange rate is expected to temporarily rest.

China's foreign exchange trading center on Monday announced that in January 24, 2011, the middle price of the US dollar exchange rate in the inter-bank foreign exchange market was US $1 against RMB 6.5883 yuan, which was slightly lower than the previous trading day by 3 basis points, and was at a level unchanged from the 20 yuan RMB exchange rate reform.

It is worth noting that, in the context of a sharp fall in the overnight dollar index, the RMB exchange rate has not yet created a new high exchange rate. Some analysts said that this may reflect the internal adjustment requirements of the RMB exchange rate.

For the central parity of the RMB exchange rate offered by the foreign exchange trading center on Monday, the political commissar said that this may indicate that the RMB exchange rate will soon begin to consolidate after its initial strengthening. "After all, the renminbi will not be able to raise the appreciation of the whole year in 1 months".

At the same time, a large foreign exchange trader in Shanghai also said that after a sustained appreciation in the first 1 months of the month, the monetary authority or intends to stabilize the pace of appreciation of the renminbi. It is expected that the RMB exchange rate will remain dominated by a narrow consolidation before the Spring Festival, and there may not be a significant increase in the value of the renminbi.

On the 24 day of the inter-bank foreign exchange market spot trading, on the same day, the US dollar spot exchange rate opened at 6.5850, closing slightly down 0.03% to 6.5813, but the spot exchange rate still hit a 6.5808 low.

Analysts said that at present, the US dollar against the RMB spot rate and the central parity have been basically more "fit", but the 24 day spot rate of exchange reached a new low performance also continued to show that the market's long-term appreciation trend of the RMB still has significant expectations.

Wang Hui