[Focus on RMB] RMB To USD Midpoint Rate Hits Nearly Two-Week Low; Spot Rate Opens 39 Pips Lower at 6.6750

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《Economic Information Agency Special Report on the 9th》The RMB To USD Midpoint Rate was quoted at 6.7188 today, down 20 pips from the previous trading day. This marks the second consecutive decline, hitting a new low of over two weeks since October 22, and was approximately 390 pips weaker than market forecasts.

The RMB Spot Rate (CNY) opened 39 pips lower this morning at 6.6750, compared to the previous trading day's closing spot rate of 6.6711.

Market participants stated that the US Dollar Index surged last Friday, putting pressure on the RMB midpoint rate today. However, the prevailing tendency for foreign exchange settlement is expected to continue supporting a stronger trend for the RMB spot rate.

The Financial Markets Department of China Merchants Bank stated that following the US non-farm payrolls data, US inflation data will be key to determining whether the pricing for a December interest rate hike can continue to rise. If CPI remains sticky, and technology stocks and the credit market stabilize, the market may further price in a December rate hike, with the US dollar continuing to receive support from front-end interest rates.

Regarding the RMB, the bank believes that year-end foreign exchange settlement demand from exporting enterprises may still limit the scope for an RMB pullback.

Source: etnet The copyright of this article belongs to the original author/organization.

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