According to CITIC Fixed Income Analysis, since the beginning of this year, as the Fed’s interest rate hike has gradually come to an end, the US dollar index has fluctuated and declined as a whole.
In this context, the performance of non-U.S. currencies is clearly differentiated, with major European currencies performing better, and some resource exporting countries and Asian currencies weakening.
For the RMB in the same period, it has weakened to varying degrees against most currencies, indicating that its weak operation is still due to internal factors, including monetary policy and domestic economic fundamentals.
Looking back, although there may still be disturbances in the U.S. economic data and the Fed’s monetary policy in the short term, and the RMB exchange rate may fluctuate, as the policies on the macro economy, capital market and exchange rate continue to increase in the second half of the year, the market’s expectations for The domestic economy is expected to stabilize and pick up, and the RMB exchange rate is expected to be firmly supported by fundamentals in the medium and long term.
