After March, the RMB exchange rate returns to the 7.00 level. Based on the trend analysis of the RMB exchange rate, what is the impact of the RMB exchange rate returning to the 7 era? Come and have a look.
RMB exchange rate returns to 7.00
Since October 29, the central parity rate of RMB against the US dollar has begun to move out of the appreciation track, breaking away from the 'straight line' of the previous nearly two months. At about 15:46 on November 5, the offshore RMB exchange rate against the US dollar broke through the 7 mark, with a minimum of 6.9997, and appreciated by more than 300 basis points within a day.
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According to the analysis, the RMB's return to the 7 level is mainly affected by the following factors: first, the upward trend of the US dollar is weak, and the continuous strength of the US dollar index since April 2018 may be close to the top. Second, the attractiveness of RMB assets has increased.
With the increasing trend of RMB exchange rate, RMB assets have also formed a general positive. Historical data show that most countries' local currency exchange rates change in the same direction as the stock market, and the exchange rate stabilizes and rebounds, which is good for a shares, which is expected to stimulate foreign capital to increase investment in Chinese bonds.