The closing price of the renminbi against the US dollar fell below 6.95 and hit a new low of nearly a decade and a half.

The closing price of the renminbi against the US dollar fell below 6.95 and hit a new low of nearly a decade and a half.

Source: China News Author: 2018-10-30 10:06:23
On October 29, the official closing price of the RMB against the US dollar was reported at 6.9560, which was 82 basis points lower than the official closing price of the previous transaction. It fell nearly a decade and a half after falling below 6.95.
In the previous trading day, the central parity of the RMB against the US dollar has been lowered to 6.9510. Although the central parity of the RMB against the US dollar was raised by 133 basis points on the 29th, the performance of the RMB exchange rate in the foreign exchange market still declined.
As of 18:00 on the 29th, Beijing time, the spot exchange rates of onshore and offshore RMB against the US dollar were reported at 6.9583 and 6.9624 respectively. The former fell below 6.96, while the US dollar index remained stable and fluctuated at 96.5.
Cui Li, managing director and chief research officer of CCB International, believes that the depreciation pressure brought about by domestic and foreign monetary environment (including the US dollar trend and domestic monetary policy) is expected to gradually ease; the direct impact of trade tariffs on Chinese manufacturing is limited, international The income and expenditure are still supported and other factors do not support the continued weakening of the RMB exchange rate.
Cui Li stressed that the main reason for the small pressure on the overall depreciation of the renminbi is that the driving force for the appreciation of the US dollar is insufficient, and the pressure for continued divestment in emerging markets is not strong.
Cui Li said that the exchange rate of the RMB against the US dollar is expected to remain near 6.9. If external pressures rise, the central bank may increase intervention in the stable exchange rate to avoid short-term trends and strengthen pessimistic expectations.
As Pan Gongsheng, deputy governor of the People's Bank of China and director of the State Administration of Foreign Exchange, reiterated this week, China has the foundation, ability and confidence to maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.