6.8845 RMB exchange rate against the US dollar fell by 12 basis points

According to the latest announcement of the China Foreign Exchange Trading Center, on April 26, the central parity of the RMB-dollar exchange rate in the inter-bank foreign exchange market was set at 6.8845 yuan, down 12 basis points from the previous day. Forex analysts pointed out that in recent days, the US dollar index has plunged into a weak shock, but further downside space is limited; the volatility of the RMB against the US dollar has clearly converged, and it is difficult to break the fabric in the short-term.

On the 25th, the central parity of the RMB against the US dollar in the inter-bank foreign exchange market was lowered by 160 basis points to 6.8833 yuan, the largest reduction in the past two months. However, the exchange rate fluctuations of the RMB against the US dollar market are still very limited. As of 16:30 on the 25th, the on-the-counter RMB-to-dollar spot inquiry transaction closed at 6.8863 yuan, up only 1 basis point from the previous closing price, and the overall range continued to be narrow within the range of 6.87 to 6.89 since April 13. Concussive operating characteristics, night trading at 23:30 reported 6.8851 yuan, down 5 basis points from the closing price of the previous day's night. Since April 13, the spot exchange rate of the RMB against the US dollar has continued to fluctuate within a narrow range from 6.87 to 6.89, with both fluctuations being very limited.

On the 25th, the US dollar index in the international market rallied, fell slightly, continued to remain weak, and the uncertainty of the French election declined, stimulating the euro exchange rate to rise, putting the US dollar index under pressure. According to Reuters, three sources in the ECB's management committee and close to the management committee said that the risk of the two anti-EU candidates in the French election in the second round was eliminated, and because the economy is at its best for many years. The European Central Bank may fine-tune the wording in the June monetary policy statement. The euro rose 1.34% against the US dollar at 1.0869, and rose to a five-and-a-half-month high of 1.0951.

Market participants pointed out that the US new home sales data is strong, Trump may announce the tax reform plan on Wednesday, which will support the US dollar exchange rate. In the short term, the space for the dollar to continue to depreciate may not be too large, but it is obviously lacking. The momentum of continued sharp appreciation, the weakening of the US dollar index is hard to come by. In this regard, the exchange rate of the RMB against the US dollar will remain generally stable. From the internal factors, financial de-leverage and suppression of asset price bubbles also constitute a favorable for the RMB exchange rate.

According to the report of Xingye Research, from the data of foreign exchange settlement and sales, the supply and demand of the foreign exchange market in the first quarter of 2017 tends to be balanced. The SAFE believes that the marginal effect of the Fed's interest rate hike is weakened, and that the domestic fundamentals are more stable, so it is able to cope with the Fed's interest rate hike and contraction. On the whole, the expectation of RMB depreciation is expected to continue to decline. The RMB will fluctuate with the US dollar index in both directions throughout the year, and the depreciation pressure is less than 2016.

The People's Bank of China authorized the China Foreign Exchange Trading Center to announce that the central exchange rate of the RMB exchange rate in the inter-bank foreign exchange market on April 26, 2017 was: 1 US dollar to 6.8845 yuan, 1 euro to 7.5250 yuan, 100 yen to 6.1964 yuan, 1 Hong Kong dollar. For RMB 0.88477, 1 pound against RMB 8.8371, 1 Australian dollar against RMB 5.1905, 1 New Zealand dollar to RMB 4.7834, 1 Singapore dollar to RMB 4.9398, 1 Swiss franc to RMB 6.9305, 1 Canadian to RMB 5.0726 Yuan, RMB 1 to 0.63213 Malaysian Ringgit, RMB 1 to 8.1487 Russian rubles, RMB 1 to 1.8981 South African Rand, RMB 1 to 163.58 won, RMB 1 to 0.53335 UAE Dirham, RMB 1 to 0.54454 Saudi Riyal, RMB 1 to 41.4064 Hungarian Forint, RMB 1 to 0.56084 Polish Zloty, RMB 1 to 0.9886 DKK, RMB 1 to 1.2736 Swedish Krona, RMB 1 to 1.2441 NOK, RMB 1 yuan to 0.51996 Turkish lira, 1 yuan to 2.7405 Mexican pesos.