Sino-Singapore Jingwei Client's March 3rd data from the Foreign Exchange Trading Center shows that on March 3rd, the central parity of RMB against the US dollar rose by 295 points to 6.9516 from the previous day. The largest since January 14,
Source: Forex Trading Center
On March 2, the spot exchange rate of RMB against the US dollar was reported at 6.9578 yuan, closing up nearly 320 points to a new high in more than a month, and the median price also rose sharply by 255 points to a two-week high.
On the other hand, the US dollar continued to weaken, and the US dollar index fell sharply to a six-week low on the 2nd at 97.3549. Fed Chairman Powell issued a statement on Friday saying that in the face of the risks of the new crown epidemic, the Fed will "take appropriate action" to support the economy. In response, investors bet the Fed will relax its policy and cut interest rates by 50 basis points at its March meeting.
Reuters quoted traders on the 3rd, saying that the risk of new crown pneumonia epidemics in the global spread is still high, the Fed's interest rate cuts are expected to continue to rise, the euro and other non-US currencies continue to rise, the yuan has also been boosted, there is still some room for rebound in the short term.
A foreign bank trader said that it is estimated that the Federal Reserve will cut interest rates at least 1-2 times, and the euro has rebounded relatively. "If the US dollar index breaks below 97, the renminbi may also rise above 6.94, and the probability of filling the gap is very high."
China Securities Journal reported on the 3rd that due to the epidemic and other factors, the domestic financial market has experienced significant fluctuations recently, but RMB asset prices have quickly stabilized and rebounded, and have been fully repaired. This not only benefits from the precautionary and timely preparation of regulatory policies, but also stems from the solid defense line created by the intrinsic value of RMB assets, which has effectively defended the national economic and financial security.
Wen Bin, chief researcher at China Minsheng Bank, said that the US Federal Reserve ’s easing monetary policy is expected to weigh on the US dollar, and as the dollar weakens, the exchange rate of the renminbi to the US dollar rebounds. Recently, the yield on 10-year US Treasury bonds has repeatedly hit record lows, the spread between China and the United States has widened, and the “national debt into Morocco” has prompted international investors to be optimistic about the Chinese capital market and has also promoted the gradual appreciation of the RMB exchange rate. (Zhongxin Jingwei APP)