How Much Impact Of Exchange Rate On Import Yarn Cost?

The biggest attraction in recent months is today's US election. The tug of war between Hilary and trump has never stopped. Today, the curtain has come to an end.

The results of many polls released before were all slightly higher than that of Yi. However, the fact is always hard to predict. In the end, with the victory of trump, there are several unhappy families.

So what will be the most direct impact of Trump's election on our import yarn Market? The US general election has finally come to a close.

All of them fell sharply for a short time, and the US dollar weakened sharply.

There is no doubt about the exchange rate.

Since the beginning of 2014, the RMB has been in the trend of appreciation against the US dollar. However, since last month, the depreciation rate of RMB has increased significantly, and it has been advancing all the way.

If we do not consider the changes in the quotation, only considering the impact of the exchange rate, the cost of imported yarn will increase by about 100-120 yuan per ton during the National Day holiday, and it will increase by about 330-400 yuan per ton in a month.

The exchange rate has a considerable impact on costs in the case of large fluctuations in exchange rates.

Therefore, Ben has always suggested that the forward lock exchange should be used to reduce the volatility of the exchange rate.

In September 30th, the forward lock rate of 6.7281 months was lower than the current level, which is more advantageous to importers.

After Trump's election as president of the United States, the global capital market has declined sharply, and the US dollar has weakened sharply. However, as of the time of this article, the US dollar has begun to pull back to the RMB, mainly because the public is digesting this important news. At the beginning, the sharp fall caused by shock and panic is a normal phenomenon after being slowly digested and rebounded.

Moreover, the strengthening of the Fed's rate hike in December is also a strong driving force for the rise in the US dollar.

It is expected that a slight drop or shock consolidation may take place in the short term.

It is possible to break through the 6.8 level this year. It is also possible to break through 7 in the medium and long term.

Sum up: Eleven during the National Day holiday, the RMB against the US dollar.

The cost of imported yarn increased by 100-120 yuan / ton, excluding the change in quotation from outside, and increased by 330-400 yuan / ton by the end of October.

It is expected that in recent days, the RMB may slightly adjust against the US dollar, and in the medium and short term, there will still be a bigger probability of depreciation. It is expected that this year will break through the 6.8 level.

It is suggested that the forward lock exchange be used to reduce exchange rate risk in the case of large exchange rate fluctuations.