After experiencing a sharp drop on Monday (March 9), the exchange rate of the RMB against the US dollar appreciated for two consecutive trading days. On March 11, both the onshore and offshore markets rose above the 6.50 mark.
According to data from the China Foreign Exchange Trading Center, on March 11, the central parity of the renminbi against the US dollar reported 6.4970, an increase of 136 points. Driven by the central parity, the spot exchange rate of the RMB against the US dollar recovered the 6.50 mark at the opening, with the highest appreciation reaching 6.4925, which was more than 150 basis points higher than the previous trading day.
More reflecting the expectations of international investors, the exchange rate of the offshore renminbi against the U.S. dollar rose to 6.4954 at the highest intraday on March 11.
“Recently, the U.S. dollar index has been closely related to U.S. bond yields. Although the U.S. dollar index has risen the day before, market sentiment is still stable. As the U.S. dollar has fallen, it is estimated that the renminbi exchange rate will continue to fluctuate in the near future.” The member said.
At the beginning of this week, the exchange rate of RMB against the U.S. dollar fell sharply. The spot exchange rate of RMB against the U.S. dollar fell to the lowest intraday 6.5445, wiping out the annual increase; the offshore RMB exchange rate against the U.S. dollar once fell to 6.5616.
Industrial Research predicts that U.S. Treasury yields will continue to rise, and once the yield enters the allocation range, it will help the U.S. dollar index rebound. In the short term, the US dollar/renminbi exchange rate “tops”, and the US dollar/renminbi exchange rate may fluctuate in an expanded range in the market outlook, but it will not hinder its range volatility.