The Renminbi Fell To Its Lowest Level In Nearly 17 Months.

The yuan fell to its lowest level in nearly 17 months on Tuesday against the US dollar, prompting investors to continue to sell the yuan because of dollar demand at the end of the month.

According to foreign media reports, although the Central Bank of China once again tried to guide the renminbi to rise through the daily middle price, the yuan continued to fall.

In the post market period, the yuan fell to $1 against the US dollar to 6.2591 yuan, the lowest level since hitting 1 yuan in December 4, 2012 to 6.2636 yuan. So far this year, the yuan has fallen by 3.3%, which has taken up 2.9% of last year's gains and has become Asia's worst performing currency.

The people's Bank of China will be on Tuesday. dollar The central parity of RMB against RMB is RMB 6.1556 yuan, which is lower than RMB 6.1565 yuan on Monday, marking the central bank's fifth consecutive trading days leading the yuan up through the middle price. However, the RMB trend in the offshore market did not follow the guidelines of the central bank, nor was it affected by the decline in the US dollar in overseas markets.

Offshore market, the 1 year US dollar / RMB non deliverable forwards 6.2566/6.2576 yuan, which is higher than the 6.2510/6.2530 yuan at the end of Monday, suggesting market The renminbi is expected to rise by 0.02% in the next year.

Hongkong offshore renminbi market, US dollar RMB 6.2571 yuan, 6.2540 yuan higher than the end of Monday.

Liu Dongliang, senior analyst at China Merchants Bank, said that the dollar was expected to reach 6.2600 yuan by the end of April, but it would not be surprising if the yuan fell further.

Traders say it is difficult to predict the trend of the renminbi, because the market is mainly affected by the customer flow recently.

A local bank trader in Shanghai said that when China's economic growth slowed down, the Central Bank of China changed the market's view of the renminbi, and now it is not easy to turn the market.

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The central parity of the RMB exchange rate has strengthened for the fifth consecutive trading day, but the spot rate is still weakening. On the same day, the spot dollar exchange rate of the US dollar was easily refreshed at the same time. At the same time, the intraday price rose to 6.2591, which is already approaching the 6.26 integer pass.

China foreign exchange trading center on Tuesday announced that in April 29, 2014, the inter-bank foreign exchange market, the US dollar against the RMB exchange rate was 1 yuan to the RMB 6.1556 yuan, the intermediate price was 9 basis points lower than the 28 day's 6.1565, and the central parity of the RMB exchange rate has been strengthened for fifth consecutive trading days. On the spot trading, the US dollar had a narrow oscillation on the spot exchange rate in the early morning of the 29 day, and dropped to 6.2442 in the afternoon after being suspected of selling large quantities of foreign exchange, but then the exchange rate continued to oscillate, and recorded a slight rise throughout the day. At the close, the US dollar spot exchange rate of RMB was 6.2580, up 50 basis points or 0.08% compared with the previous trading day, and the largest one-day amplitude of the mid day price was 1.66%.

Market participants said that the momentum of RMB spot exchange rate continued to weaken in the short term is still continuing, and the strength of foreign exchange purchase is still relatively strong. Against this background, if there is no positive stimulus from the economic fundamentals, short-term spot exchange rate is expected to continue to run slightly weaker oscillation pattern.