On Monday, November 20, the onshore renminbi exchange rate against the US dollar recovered 7.19 and 7.18 in intraday trade, and closed at 7.1747 as of 16:30 Beijing time. The offshore yuan rose more than 500 points against the dollar during the day, peaking at 7.1659.
As for the factors driving the strength of the RMB, Pang Ming analyzed that, first, the meeting between the heads of state of China and the United States released positive signals, and geopolitical uncertainties were largely eliminated; Second, the United States inflation in October fell more than expected, the Federal Reserve in December to further increase the need to weaken, while China's MLF excess parity continued, November LPR "stay put", the two countries did not expand the level of interest rate spread; Third, China's macro data in October was good, the main indicators of the national economy continued to improve, the economic operation was generally stable, and the fundamentals provided a solid foundation and backing for the RMB exchange rate.
For the next exchange rate trend, Zhao Qingming told reporters that on the one hand, from the perspective of the international foreign exchange market, to look at the trend of the US dollar index, the US dollar is strong, non-US is inevitably weak, the US dollar is weak, non-US is strong; On the other hand, from the domestic point of view, China's economic stabilization and recovery is inevitable, if there is uncertainty in the domestic economy, the exchange rate will inevitably fluctuate.
The foreign exchange research team of CICC believes that considering that the RMB exchange rate has broken through an important technical threshold, it is judged that the RMB exchange rate still has room to rise further.
