Cautious Exchange Rate And Narrow Fluctuation Of RMB

On the 28 day, the central parity of RMB against the US dollar was set at 6.1638, up 20 basis points from the previous trading day.

In the international foreign exchange market, because of the speculation that the European Central Bank will soon launch quantitative easing policy, and the US dollar's short-term growth is too large, since the 27 European trading session, the US dollar multi head profit taking behavior has increased, leading to the US dollar index falling from high. This trend is maintained in the 28 Eurasian trading season.

It should be said that yesterday's middle price and US dollar trend are conducive to further expand the appreciation rate of RMB spot exchange rate.

However, on the 28 day, the spot trading of RMB against the US dollar was in a concussion after a slight opening, and it continued to run sideways throughout the day. There was a wave of diving at the end of the day, which ended up at 6.1446, down 14 basis points from the previous day's closing price.

In the overseas non deliverable forward foreign exchange (NDF) market, the US dollar / Renminbi one year variety rose to 6.2240 on the 28 day, indicating that investors expect the RMB intermediate price to depreciate by about 1.3% a year later.

In the offshore renminbi market in Hongkong, USD / RMB traded at 6.1490 front-line, also higher than 6.1467 on Wednesday.

Traders said that since the beginning of June, the appreciation of the renminbi has been relatively large. Further appreciation or strong fundamentals are needed to follow up.

Repeated performance, the market bottomed up for economic recovery has not yet formed a consistent expectation, and the Fed's interest rate increase is expected to ferment, the continued rise in the dollar also add to the future RMB.

Uncertainty of direction.

In this context, participants became cautious and chose to watch more and less, resulting in narrow fluctuations in the exchange rate and light trading in the market.

In addition, the RMB exchange rate in offshore markets has been lower than on shore prices, and the tendency to continue to see more is not obvious.

On the whole, the RMB exchange rate has changed for some time.