Fed Raise Interest Rate Is Expected To Re Pricing

The renminbi rose more than 200 points in early trading on Thursday (March 17th) against the dollar, and is still closely following the performance of the middle price.

Traders said that the US Federal Reserve kept interest rates unchanged, suppressed the US dollar index to a month low, significantly weakened the expected devaluation of the RMB, and maintained a wide range of fluctuations while maintaining the overall stability of a basket of currencies.

They also pointed out that in the early morning, the offshore CNH and the on shore spreads were obviously upside down. They had briefly pushed up the demand for foreign exchange settlement on the shore. However, with the narrowing of the gap between the two places, this demand quickly left the field. Near the midday exchange rate, the offshore exchange rate basically remained below 40 of the central parity price, and the big line was also near the 6.50 yuan.

"Yang Ma still sticks to the rules, but the fluctuation is smaller than that of the US dollar, which makes the CFETS (RMB exchange rate) index a little weak. The exchange rate elasticity will be higher, but the trend is not likely to rise."

One foreign trader said.

Analysts also generally believe that the short term

The weakening of the expectation of depreciation is conducive to the improvement of the behavior of foreign exchange settlement and sale; the short term of the renminbi is temporarily closed, and the adjustment of the balance sheet of residents will also slow down.

In February, the deficit of China's foreign exchange sales decreased by nearly 50% to 35 billion US dollars, a four month low, indicating that the balance of foreign exchange and sales was gradually balanced.

Analysts pointed out that February coincided with the weak international dollar performance of the RMB.

During the Spring Festival, the trading days of the Spring Festival decreased, and the RMB price difference between the inside and outside sections decreased rapidly or even upside down. It also eased the impulse to purchase foreign exchange in China, and the pressure of cross-border capital outflow was significantly relieved.

At 12:06 Beijing time, the renminbi was 6.4980 yuan against the US dollar and 6.5210 yuan on the previous day.

Today, the central parity of RMB against the US dollar is 6.4961 yuan, and the middle price of the day is 6.5172 yuan.

RMB exchange rate

The immediate turnover amounted to $8 billion 160 million, which was $6 billion 500 million a day.

In the global market, Thursday's Asian dollar consolidation fell sharply after the Federal Reserve lowered its expected rate hike this year from four to two.

The US dollar managed to pull back some of its losses against the yen.

The expected decline in the Fed's tightening policy promoted Asian stock markets and improved market sentiment, making the yen lower.

In the overseas non deliverable Forex foreign exchange (NDF) market, the latest US dollar exchange rate for RMB is up to 6.6677 yuan in one year, and 6.6883 yuan on the last day.

Hongkong's offshore RMB against the US dollar is up to 6.4932 yuan on the spot, and the last trading day is 6.486 yuan.

The exchange rate of China's foreign exchange trading center today is 11 RMB 6.4996 against the US dollar, and the trading center has published 12 reference prices every day since January 4th. It is issued at 10 a.m., 11 p.m., 2 p.m. to 11 p.m. per hour.

The Central Bank of China [micro-blog]2015] announced in August 11th that it would improve the price of the RMB to the US dollar in order to enhance its marketization and benchmarking.

Since then, the market maker will quote the closing rate of the interbank foreign exchange market in the daily interbank exchange market before considering the foreign exchange supply and demand as well as the exchange rate changes of the international major currencies, and offer the middle price quotation to the China foreign exchange trading center, with a one-time depreciation of nearly 2%.