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RMB Exchange Rate Breaking 6.39 To Earn Foreign Exchange To A New High Of &Nbsp; Appreciation In The Second Half Of 1.28%

2011/8/25 10:39:00 37

RMB Exchange Rate Changes To New Heights

Strong Renminbi in recent stages

exchange rate

After a brief rest after 6 trading days, another new high has come to China.

In August 24th, the interbank foreign exchange market reported a 6.3896 yuan against the central parity of RMB, a 91 basis point lower than the previous trading day.

Analysts said that overnight dollar weakened slightly, to a certain extent, promoted the RMB exchange rate rose 24 days, but on the other hand, the RMB still showed a strong initiative to appreciate the characteristics.

It is expected that the US dollar will continue to be weak in the context of the US Federal Reserve's QE3 (third round of quantitative easing) pace or approaching, and the RMB exchange rate is expected to remain strong in the short term.

It has appreciated 1.28% in the second half of this year.

According to the China foreign exchange trading center, the interbank market in August 24th the US dollar to the RMB exchange rate intermediate price was 6.3896, compared with the previous trading day 6.3987 dropped 91 basis points.

The central parity of the RMB against the US dollar broke through the 6.39 integer pass for the first time, and again hit the new high since 2005.

At the same time, this is also following this month 10, 11 days later, the RMB to the US dollar exchange rate appears again the single day 100 base point about the big appreciation.

Statistics show that as of August 24th, the RMB has accumulated against the US dollar since July 2005.

appreciation

29.43%, from 2011 to now, the appreciation has reached 3.65%.

It is worth noting that since the appreciation of RMB has accelerated significantly since August, the appreciation of RMB against the US dollar has reached 1.28% in less than two months since the second half of this year.

Market participants said that after the short-term consolidation of the 6 trading days, the RMB exchange rate once again refreshed the new high since the reform, which has continued the strong appreciation trend in the recent period.

The dollar index remains weak overnight, and to some extent, it supports the strength of the RMB exchange rate.

US government announced the 23 night of Beijing time.

Economics

Data show that in July, the US new home sales fell 0.7%, exceeding market expectations.

The Richmond fed manufacturing index also fell from -1 to -10.

Affected by this news, the 23 dollar index again showed a slight decline of 0.40%.

New high offensive short-term or continuous

This year's annual meeting of the global central bank will be officially opened.

As Bernanke announced the launch of the second round of quantitative easing in the $600 billion scale at the annual meeting of the global central bank in 2010, investors' expectations for QE3 are heating up as the annual meeting approaches.

If QE3 is indeed launched, a new round of depreciation of the US dollar and the rise in international commodity prices will inevitably be inevitable.

Some analysts pointed out that from the recent point of view of the central bank's monetary policy orientation, the central bank may still rely on exchange rate instruments in the short and medium term to achieve policy tightening so as to counter current and possible imported inflation.

Xie Dongming, a foreign exchange analyst at OCBC, points out that the weak economic data is increasing the expectation of the new round of the economic stimulus plan of the Federal Reserve, and the market may continue to look for opportunities to sell the US dollar, so the short-term trend of the US dollar may weaken further.

A foreign exchange trader in Shanghai has said that as of Wednesday, the central parity of the RMB against the US dollar has jumped to 100 basis points in the month, indicating that the monetary authorities are accelerating the appreciation of the RMB in the short term.

This may not only be the policy choice after the frequent use of interest rate and reserve ratio this year, but also may be a policy adjustment aimed at the new financial situation at home and abroad at the recent stage.

In the short term, the renminbi may still take the initiative to seek a substantial appreciation.

Spot exchange rate, affected by the sharp rise in the price of the central parity, on the 24 day, the US dollar received 6.3885 yuan in the inquiry trading system, slightly below the middle price level of the day, down 85 basis points from 23 days.

In the offshore market, the 1 year US dollar has been trading around 6.28 near the NDF, suggesting that the yuan will appreciate by about 1.7% in the coming year.