The RMB Exchange Rate Hit A 7 Month High, And Spot Exchange Rate Rose For 6 Consecutive Months.

On the last trading day of October, the central parity of the RMB against the US dollar fell slightly after the overnight dollar index strengthened, and the spot exchange rate went against the middle price and hit a new high in more than 7 months.

Market participants say that the current market performance of the renminbi depends mainly on supply and demand in the context of the overall stability of the central parity price. It is expected that the spot exchange rate will continue to appreciate slightly at the end of the year and is expected to break through the 6.10 pass.

Since October, the intermediate price of the RMB against the dollar has been following the overnight dollar index.

According to the China foreign exchange trading center, the central parity of RMB against the US dollar in October 31st was 6.1461, down 4 basis points from the previous trading day.

Overnight in the international foreign exchange market, Wednesday

The official conclusion of the QE news continues to boost the US dollar trend.

The whole day is up 0.15%.

On the 31 day spot foreign exchange market, the spot dollar exchange rate of RMB against the US dollar was not affected by the low price of the intermediate price. In the morning market, it opened 31 basis points to 6.1128 and reached the highest level in the afternoon, reaching the highest level since March 10th.

Near the end of the market, the spot exchange rate of RMB showed a wave of callbacks, eventually closing at 6.1135, up 24 basis points or 0.04% from the previous trading day.

From the performance of the whole month, the central parity of RMB against the US dollar rose by 64 basis points or 0.10% in October, and spot exchange rate rose 260 basis points or 0.43%. The spot price trend was stronger than the middle price.

As of October, the spot exchange rate of RMB has risen for six consecutive months, recovering most of the devaluation of the first four months of this year.

In the first 4 months of this year, the total depreciation of RMB in the spot foreign exchange market was 3.30%, and the cumulative depreciation rate has narrowed to 0.97% this year after six consecutive months of recovery.

In addition, the Yuan's central price has fallen by 492 basis points or 0.80% this year.

Analysts pointed out that the current

The interest rate gap is still very wide. The US Federal Reserve ended QE will not cause massive capital outflow for a time, and the high surplus of foreign trade will also support the RMB exchange rate formation. Therefore, the mainstream view of the market still sees many medium and long term RMB. It is expected that the central parity of RMB will maintain inter regional shocks until the end of the year, and the spot exchange rate is expected to break through the 6.10 pass.

However, considering that the domestic economic situation is still weak, and the strong US dollar has led to a rise in the willingness of the private sector to hold foreign exchange, there is also a small probability of a significant appreciation of the renminbi.