RMB To The US Dollar Reported A New High

Because National Day holiday International period foreign exchange market The dollar plummeted yesterday. RMB The median price against the US dollar is 6.6830, which has reached a new high since the exchange rate reform, rising by 0.27%.

Foreign exchange analysts said that domestic residents holding US dollars should be able to settle foreign exchange as early as possible; holders of non US dollar currencies could hold up, but we should pay close attention to the trend of international foreign exchange market.

When the market opened yesterday, the central parity of RMB against the US dollar jumped sharply by 181 basis points, which was 6.6830, once again hit a new high since the exchange rate reform, with a daily rise of 0.27%.

Dai Weiyu, foreign exchange analyst at Guangdong branch of ICBC, said that the main reason for the rise of the renminbi was that foreign trade was still going on during the National Day holiday, and that a large amount of foreign exchange accumulated by enterprises accumulated after the festival, and the volume of foreign exchange settlement by banks increased sharply, resulting in a low US dollar. In addition, during the period of the Qing Dynasty, the decline of the US dollar in the international market also contributed to the high jump of the RMB against the US dollar.

Euro and Australian dollar rise

Since September 30th, the US dollar index has dropped from 78.81 to 77.50 at 4 p.m. yesterday, with a 1.66% decline in the whole holiday period. The euro rose to a maximum of 2.85% against the US dollar during the holiday, and the Australian dollar reached its highest level on Thursday, reaching a 0.9916 year high of 27 years, with the highest increase of 2.5%.

Non dollar currencies or continue to rise

How can we manage foreign exchange financing when the RMB exchange rate fluctuates and the US dollar falls all the way?

Dai Weiyu said that from a fundamental point of view, non dollar currencies are still expected to continue to rise. After the Federal Reserve loosened its monetary policy, the Bank of Japan also started to move on, on the one hand, to cut interest rates, on the one hand, to exchange rate intervention and to prepare for capital injection. The ECB and the Bank of England have also changed the trend of exchange rate from the most liberal policy of previous considerations. Canada and Australia's central bank also suspended interest rates.

The yen exchange rate is uncertain.

The main countries' investment in the market will push capital into high-risk markets for arbitrage transactions, and the commodity market will be a better target for speculation, which is beneficial to non US dollar currencies, especially Australian dollar and Canadian dollar. The euro, Australian dollar and Canadian dollar will continue to expand. However, due to the introduction of a number of supporting measures by the Bank of Japan to intervene in the yen, the yen exchange rate is very uncertain.

For the RMB exchange rate, Dai Weiyu said that the annual appreciation will not be too great. The renminbi will continue to depreciate against non Japanese dollar currencies other than Japanese yen.

Suggestion: long term investors should use RMB to manage money.

In this case, how can foreign currency be managed? Dai Weiyu suggests that for the prudent investors, the dollar in hand should be settled as soon as possible; if the holder holds Euro dollar, Australian dollar and other non US dollar currencies, it can continue to hold up. At present, it is not recommended to catch up. It can wait for the Australian dollar to return to 0.95~0.96 and the euro to 1.35~1.36. However, in recent two years, the fluctuation cycle of the international foreign exchange market has obviously shortened, and the holding of non US dollar currencies must be based on short-term operation.

Dai Weiyu said that because the current RMB financing income is not low in the whole world, because the domestic investment way is few, for the public who does not pay much attention to the short-term fluctuation of exchange rate, it will be safer to exchange foreign currencies in the hands of the RMB for financial management.