The Central Parity Of RMB Against The US Dollar Has Also Set A New Increase.

Foreign exchange market participants say that the renminbi will appreciate slightly against the US dollar in the next few days, but basically do not have the conditions to go back to the trend of appreciation. If a basket of currencies can maintain a moderate depreciation, the deviation between the real exchange rate of RMB and the fundamentals will continue to be corrected.

Under the traction of the overnight dollar index, the central parity of the RMB against the US dollar was set at 6.4589 yuan, rising by 0.56% or 365 basis points on a single day, the biggest increase since 2005.

However, that day

Market trading price volatility is relatively mild, the offshore renminbi against the dollar spot exchange rate closed down 17 basis points.

At the same time, due to the appreciation of the renminbi, such as euro, yen and other major non US currencies, the market forecasts that the renminbi will maintain a slight depreciation trend towards a basket of currencies.

The central parity of the yuan against the US dollar has been recorded for more than 10 years, mainly owing to the dismal performance of the overnight dollar.

Data show that, on the 28 day, the dollar index fell below the 94 pass, closing at 93.77, or 0.67%, the largest in nearly a month.

Non US currencies rose all the way, such as the euro rose 0.23% against the dollar, the pound rose 0.50%, and the Japanese yen surged 3.01% against the dollar.

Foreign currency people said that the US dollar suffered a lot of "hunting" in a multiple negative way, and underscored the weakness of the US dollar in the short and medium term.

Foreign exchange analysts pointed out that between developed economies

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"Convergence" has created a stage weakening pattern of the US dollar, while the Chinese economy has shown a good momentum of stabilization in the recent stage. These two factors are conducive to easing the pressure on the depreciation of the RMB against the US dollar.

But at the same time, China's economic stabilization needs to be observed. The support for exchange rate may be limited, and the pressure of capital outflow has not been completely eliminated.

In addition, although the GDP data in the first quarter increased concerns about the sustainability of the US economic expansion, strong job market and optimistic salary prospects still support the improvement of consumer spending. This will be a powerful factor to support the growth of the US economy, and the US dollar may also be overlooked.

To sum up, in the short and medium term, the exchange rate of RMB against the US dollar shows a range of shocks and the underlying trend of raising the trend of operation is greater, and the fluctuation of the US dollar will still be the main source of RMB exchange rate fluctuations.