offshoreRMBThe exchange rate posted its biggest rise on record on Wednesday, bullish as investors expected the U.S. Federal Reserve to slow the pace of interest rate hikes and Chinese banks sold dollars.
According to Bloomberg, offshoreRMBThe exchange rate rose 1.8% in intraday trade on Wednesday, rising toRMB At 7.1917 yuan to the dollar, it was flat at 7.1870 yuan in Asian trade on Thursday.onshoreRMBAgainst the U.S. dollar, it closed at 7.1710 yuan on Wednesday night, up 942 basis points.
A foreign exchange trader at a Hong Kong bank said:RMBThe sharp rise in the exchange rate started at 3:00 pm on Wednesday. At first, the foreign exchange market once speculated that relevant Chinese departments would enter the market.RMB, which suddenly triggered a massive short-covering wave. “
Stephen Chiu, chief Asia FX and rates strategist at Bloomberg, said:RMBThe bulls are that state-owned banks may intervene, and the dollar is generally lower; the past few daysRMBAfter a rapid depreciation, there are some short-term signs of stabilization.
Data released by the United States recently showed that the index of manufacturing, housing prices and consumer confidence were not as good as economists expected, indicating that the Fed’s tightening of monetary policy has begun to show results, prompting investors to expect that the Fed may slow down the pace of interest rate hikes. .
Fed officials have also been more cautious recently, such as San Francisco Federal Reserve Bank President Daly last week saying the Fed should start planning to taper rate hikes.
Wang Qing, a macro analyst at Oriental Jincheng, said that even if the Fed raised interest rates sharply in November, it would lead toRMBThe exchange rate is under pressure again, and relevant Chinese authorities still have sufficient “exchange rate stabilization” tools to ensureRMBThe exchange rate fluctuates steadily at a reasonable and balanced exchange rate level, including expanding the scale of central bank bill issuance in the Hong Kong market, tightening offshore billsRMBLiquidity, lowering the macro-prudential adjustment factor for corporate overseas lending, restarting the counter-cyclical factor, and lowering the foreign exchange deposit reserve ratio.