Yesterday, the onshore RMB gapped more than 700 points against the U.S. dollar and continued to rise. It rose by more than 1,000 points during the day. The daily increase of 1.47% was the highest in nearly 10 years since November 5, 2011; the offshore RMB was falling against the U.S. dollar. After breaking the 6.66 mark, it rebounded quickly and rose strongly above the 6.61 mark, setting a new high in more than two years. As of the press release at 19:00, the onshore and offshore renminbi were quoted at 6.6114 and 6.6071 against the US dollar respectively.
At a time when global market uncertainty is permeating, the two-way volatility of the RMB exchange rate has increased and its flexibility has increased significantly. On the previous day, the onshore RMB exchange rate against the U.S. dollar hit the lowest 6.7537, with an intraday drop of more than 600 points; the offshore RMB against the U.S. dollar fluctuated more than 1,500 points during the day, the largest intraday volatility since August 2015.
According to industry insiders, this trend of the RMB exchange rate is a full reflection of market uncertainty and other unstable factors. In the short term, the volatility characteristics of the RMB trend will become more obvious. Market entities should actively adapt to the trend of two-way exchange rate fluctuations.
The appreciation of the renminbi has a significant impact on export companies, which will compress their profits and cause prices to rise, including our power cord products.
Post time: Nov-06-2020