The Renminbi exchange rate strengthened at the beginning of the year, experts warned not to blindly "bet" on the direction.

The continuous strengthening of the Renminbi in this round is the result of multiple factors resonating together. Industry experts believe that, on the one hand, the marginal improvement in the external environment provides upward pressure for non-US currencies, including the Renminbi; on the other hand, the concentrated release of corporate foreign exchange demand before and after the Spring Festival injects seasonal momentum into the exchange rate. Despite the bright performance of the Renminbi, many experts remind that the exchange rate of the Renminbi is driven by multiple factors, and one should not speculate on the unilateral appreciation or depreciation of the Renminbi. In the future, the trend of the Renminbi still needs to observe changes in foreign exchange demand, fundamental expectations, and the direction of the US dollar. Market participants should remain rational and avoid blindly betting on a one-way market.