On January 11, the intermediate price of RMB against the US dollar rose 251 basis points to 6.7909, a new high since July 26, 2018.
By 13 o’clock, the onshore and offshore renminbi had risen to a new high of 6.75 against the dollar since July 2018.
Before that, it would break the “7” without moving. Now, how can it change? The RMB has straightened up its waist.
In fact, this round of RMB appreciation against the US dollar is not a matter of two days.
The current round of appreciation began in mid-November 2018, so far, the appreciation has exceeded 2%.
If the closing price is 6.8499 on January 7, the onshore appreciation of RMB will exceed 1000 points in the past week.
Not only against the US dollar, but also against a basket of currencies, the RMB exchange rate index of CFETS has risen from around 92.40 to around 93.30.
In less than two months, what has happened to the renminbi, from the last deep-seated devaluation to today’s high-pitched progress? What will happen in the future? How will it affect you and the employer who pays you my salary? Poke down!
1. The Fed’s expectation of ending the interest rate hike ahead of schedule warms up
The actions of the Federal Reserve have touched the hearts of the world’s currencies.
The latest minutes of the Federal Reserve meeting show that interest rate hikes are carried out when a few members are unwilling to raise interest rates. They believe that there is no inflationary pressure, oppose another rate hike, and acknowledge that the future policy path is “less clear”.
Affected by this, the dollar index fell sharply, nearly 1%, approaching 95. In fact, from November 2018 to the end of last year, the dollar index has depreciated by nearly 0.5%. The decline in the dollar index has led to the appreciation of the RMB.
2. Steady momentum of interest rate spreads between China and the United States