Multiple factors are driving the strengthening of the renminbi. "Two-way fluctuation" remains the main tone.

After Federal Reserve Chairman Powell turned "dovish" to the global market last Friday, on August 25th, the onshore RMB against the US dollar surged strongly, breaking through several key levels at the opening, closing at 7.1517, up 288 basis points from the previous trading day. Analysts believe that the strengthening of the RMB is driven by multiple factors such as the fall of the US dollar index, a significant increase in the central parity rate, and the improvement of sentiment in the capital markets. Looking ahead, the trend of the US dollar index remains a key variable in the global forex market, but the core factors determining the RMB exchange rate are still internal dynamics. Under the influence of both internal and external factors, "stability with upward trend" and "two-way fluctuations" will continue to be the main theme of the RMB exchange rate trend.