Lates News

Today, both onshore and offshore Chinese Yuan exchange rates against the US dollar have strengthened again. The offshore Chinese Yuan exchange rate against the US dollar once again broke through 7.04 and rose to 7.03725 at one point, hitting a new high since October 4, 2024. The onshore Chinese Yuan exchange rate against the US dollar reached a high of 7.0417 in intraday trading, setting a new high since October 8, 2024. Regarding the recent continuous rise of the Chinese Yuan against the US dollar, Wang Qing, Chief Macro Analyst at Orient Securities, believes there are two direct reasons. First, after the Fed interest rate cut on December 11, the US dollar index continued to decline, dropping below 100 and driving up non-US currencies, including the Chinese Yuan. Second, as the year-end approaches, the increase in corporate exchange demand has led to a seasonal strengthening of the Chinese Yuan. Following the continuous strengthening of the Chinese Yuan, the accumulated exchange demand from earlier periods may be released at a faster pace. Wang Qing stated that in the short term, the Chinese Yuan will remain in a relatively strong position, and we need to focus on the trend of the US dollar, the level of control over the Chinese Yuan's midpoint price, and the strength and pace of domestic growth-stabilizing policies. (China Fund News)