Baidu Finance, MT4 foreign exchange market related: RMB exchange rate will fluctuate widely in both directions

Sino-Singapore Jingwei, August 5th. According to the data of the Foreign Exchange Trading Center, on the 5th, the central parity rate of the RMB against the US dollar was reported at 6.7405, an increase of 231 basis points. This week, the central parity rate of the RMB exchange rate fluctuated significantly. 

 

On August 1, the central parity rate of the RMB against the US dollar was reported at 6.7467; on August 3, the value was lowered by 346 basis points to 6.7813. In the following two days, the value rebounded day by day, and the overall value returned to stability.

 

 

As of press time, the exchange rate of the onshore RMB against the U.S. dollar rose by 10 basis points from the overnight trading data to 6.7475; on the 4th, the onshore RMB against the U.S. dollar closed at 6.7485 in the night trading. The offshore yuan fell 27 basis points against the dollar to 6.7535.

 

 

 

Regarding the recent changes in the RMB exchange rate, a report from the National Economic Research Center of Peking University pointed out that the Federal Reserve continued to raise interest rates, and at the same time, geopolitical risks brought increased demand for hedging. 

 

Although the fundamentals of the domestic economy are good, which supports the RMB, it is still necessary to be alert to the impact of weakening domestic production and demand. At the same time, China's exchange rate management tools are still relatively abundant, the management of exchange rate expectations has been strengthened, and the foreign exchange reserves have maintained a reasonable size.

 

CITIC Construction Investment Futures said that Fed officials continued to make hawkish remarks, suggesting that they would continue to raise interest rates by 75 basis points in September to control persistently high inflation, and the US dollar and US bond interest rates rose sharply; the US July ISM service index increased from June 55.3 unexpectedly rose to 56.7, reflecting the current structural strength in the US market. 

 

On the whole, controlling inflation and maintaining growth is a dilemma at present, and there is still a risk of recession in the economy.

 

It is worth mentioning that the strength of the US dollar also exerts considerable pressure on the Hong Kong dollar. According to Hong Kong media, the Hong Kong exchange rate continued to hit the weak-side convertibility guarantee of 7.85 in the afternoon of August 3. 

 

The Hong Kong Monetary Authority undertook a sell order of HK$14.161 billion during the US trading hours according to the linked exchange rate mechanism on the 4th. The Hong Kong banking system concluded on August 5. fell to HK$129.293 billion. Since the early morning of May 12, the Hong Kong Monetary Authority has received money 29 times, with a total of 201.643 billion Hong Kong dollars.