Risk aversion is high! Onshore and offshore RMB both broke 7! Euro Pound Diving
Sino-Singapore Jingwei Client, March 12th. On the evening of the 12th, the onshore renminbi fell below the 7 mark against the US dollar and fell by more than 500 basis points within the day. It is now reported at 7.0015. The offshore renminbi dived against the US dollar in the short term and broke 7 earlier. Reported 7.0179. According to data from the China Foreign Exchange Trading Center, the median price of RMB against the US dollar fell by 29 points to 6.9641, a new low in more than a week.
The pound fell more than a hundred points against the dollar and fell more than 0.7% on the day, and is now trading at 1.2721. The euro's decline against the US dollar expanded to 0.5% during the day and is now at 1.1213.
Source: Wind
Reuters quoted traders as saying that the epidemic continued to spread, and that market expectations of US policy did not boost market confidence, global risk aversion was high, the RMB was weakened as a risk currency, and it is expected to remain weak in the short term.
Traders said that the spread of overseas epidemics has become more serious, and the hedging effect of the US dollar is emerging. At the same time, the overall weakness of the domestic stock market and the outflow of funds from the north have all put pressure on the yuan and the basis for its strengthening is weak.
Recently, regarding the impact of the epidemic on the RMB exchange rate, Wuhan University Economics Economics Tao Tao told First Financial that the recent decline in the US dollar index has supported the strengthening of the RMB. The market believes that the United States is slow in responding to the epidemic and the risk of out of control is increasing. Guan Tao emphasized that the market must not bet on one side. There are also many uncertain and unstable factors. In particular, we need to be more vigilant because the spread of the epidemic globally has impacted the global economy and finance, and there may be spillover effects, which in turn will affect China, causing fluctuations in market sentiment and periodic fluctuations in the yuan. .
Guan Tao said that from the perspective of the market environment, with the gradual improvement of the RMB exchange rate formation mechanism and the flexibility of the exchange rate, the ability to regulate the foreign exchange market and the maturity of the market will continue to increase. At the same time, major global economies are competing to cut interest rates, further highlighting the allocation value of RMB assets, which have a strong appeal globally. (Zhongxin Jingwei APP)