Onshore and Offshore Yuan Both Break Below 6.7 per Dollar, Hitting Over One-Year High
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On September 18, both onshore and offshore renminbi (RMB) exchange rates against the US dollar broke through the 6.7 threshold, reaching their highest levels since January 2023. Wang Qing, Chief Macro Analyst at Dongfang Jincheng, attributed the strengthening to two main factors: first, the US Dollar Index surged and then pulled back after the effects of the Federal Reserve's rate hikes were fully reflected in the market; second, the central parity rate for the RMB has been consistently adjusted in a stronger direction. Wang also noted that global currency market volatility has intensified recently due to monetary policy adjustments in major overseas economies, joint foreign exchange market interventions by the US and Japan, and fluctuations in the Middle East situation. However, the RMB has maintained a stable yet slightly strong trend. From an internal perspective, China's external economic and trade environment remains stable, exports continue to grow rapidly, and the domestic macroeconomy maintains steady progress, providing strong support for the RMB exchange rate.
Source report
Renminbi Strengthens: Onshore and Offshore Rates Break 6.7 Threshold
Jin10 Data, September 18 — Both onshore and offshore renminbi (RMB) exchange rates against the US dollar have broken through the 6.7 threshold, reaching their highest levels since January 2023.
Wang Qing, Chief Macro Analyst at Dongfang Jincheng, provided the following analysis on the strengthening of both onshore and offshore RMB:
- First, after the effects of the Federal Reserve's rate hikes were fully reflected in the market, the overnight US Dollar Index surged and then pulled back.
- Second, the recent central parity rate for the RMB has been consistently adjusted in a stronger direction.
Wang further noted that, influenced by recent monetary policy adjustments in major overseas economies, joint foreign exchange market interventions by the United States and Japan, and fluctuations in the Middle East situation, global currency market volatility has intensified. Despite this, the RMB has generally maintained a stable yet slightly strong trend.
From an internal perspective, China's external economic and trade environment remains overall stable, exports continue to grow rapidly, and the domestic macroeconomy maintains a steady progress momentum. These factors provide strong support for the RMB exchange rate.
(Source: China News Jingwei)
Source
金十数据Eastern
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