RMB Against The U.S. Dollar Immediately Hit A 3 Week Low

On April 14th, the spot rate of RMB against the US dollar fell to a low level of 3 weeks on Monday. The intraday exchange rate remained stable for most of the time, but the market affected by the suspected large purchase of foreign exchange dropped rapidly. Traders pointed out that intra day trading is relatively light, and the market is waiting for more directions.

The people's Bank of China authorizes China foreign exchange Trading Center announced that in April 14, 2014, the interbank foreign exchange market's central parity rate of RMB against the US dollar was 6.1531, which was 36 points lower than the previous trading day. At the close, the renminbi was reported at 6.2191 on the spot, 78 points lower than the previous day, and a 3 week low. The daily newspaper 6.2113.

Zhang Xiaobo, a trader at Guangdong Development Bank, pointed out that "intra day settlement and sale of foreign exchange is fairly balanced. There is a suspicion of buying large quantities of foreign exchange at the end of the day, which has rapidly pushed down the RMB exchange rate. If it can continue, it will be difficult to say, and we need to continue to observe."

Due to the recent downturn in China's economic data and the lack of enthusiasm for more RMB, the short selling of RMB seems to be unable to find a reason. Zhang Xiaobo thought, "it is difficult to judge the direction in the short term, which depends on the meaning of" big business ". We can only operate with the market. "

　　 offshore CNH dropped slightly in early trading, and the market was on shore. RMB The immediate impact of rapid fall, CNH quickly fell below the 6.22 pass. Beijing time 16:40 points, CNH reported 6.2201.

Zhu Guangyao, Vice Minister of finance of China, said that in the next ten years, China's economy will have full potential to grow at a rate of 7% to 8%. If a large-scale stimulus policy is launched due to short-term fluctuations, the long-term development strategy will be lost.

The latest RMB exchange rate index released by Fudan University in the first quarter of 2014 reported that, in the short to medium term, due to the good fundamentals of the US economy and the steady reduction of QE by the Federal Reserve, the short-term capital outflow caused the RMB to continue to have a downward pressure. However, the steady growth and gradual transformation of China's economy, the gradual promotion of RMB internationalization and the growth of the world economy's demand for Chinese products will have strong support for the RMB exchange rate.

Overall, we expect that the RMB exchange rate against the US dollar will go into a slight concussion in the two quarter, and the fluctuation will be narrowed by about 2% in the first quarter, the report said. The RMB effective exchange rate rose too much last year (the real effective exchange rate reached 8.38%, the nominal effective exchange rate reached 8.03%), and there is still room for a further slight fall, which is expected to be 2-3%.