China News Service, Beijing, July 10 (Xia Bin) China Foreign Exchange Trading Center reported on the 10th that the central parity of the RMB to US dollar exchange rate was 6.9943, the highest value in nearly four months, up 142 basis points from the previous trading day. So far, the central parity of the RMB against the US dollar has strengthened for four consecutive trading days.
On the previous trading day (July 9), the spot and offshore RMB exchange rate against the US dollar both rose above 6.99, with the former reaching a peak of 6.9824 and the latter reaching 6.9760. The US dollar index is still fluctuating in the recent low 96 range in the last two trading days.
Cao Yuanyuan, Technical Director of Research and Development Department of Dongfang Jincheng, believes that in the short term, China's economic fundamentals will improve and countercyclical policies will lay the foundation for the stable operation of the RMB exchange rate. The interest rate spread between China and the United States will remain high in the future, supporting the demand for RMB assets, and providing protection for the stable operation of the RMB exchange rate and a slight strength.
Zhou Maohua, an analyst at the Everbright Bank's financial market department, pointed out that the onshore RMB exchange rate is still expected to maintain a strong pattern in the short term, but the RMB exchange rate does not have the basis for a substantial strengthening, and will maintain two-way fluctuations near the equilibrium level in the future. This is mainly due to the high uncertainty of the global economic outlook, which inevitably has an impact on the domestic economy, and the global demand for dollar hedging has not disappeared. (Finish)