Forex Currency: Both RMB Spot and NDF Weaken

[amandalanlulei]

Forex Currency---- Yesterday (July 5th) was the first trading day in the third week after RMB currency reform. The previous spot market hit new high since three successive days of RMB currency reform. Yesterday, RMB spot and NDF market both declined, indicating the amendment of the forex market on the previous excessive appreciation.

Foreign Exchange (Forex) Trading Center, authorized by Bank of China, released statistics showing that on the spot market yesterday, RMB forex rate reported 6.7733 against the dollar, lower than the closing price of the previous day, at 6.7720. Yesterday, RMB reported 6.7758 against the dollar at close, slightly lower than the closing price of the previous day, at 6.7711. Yesterday, the forex rate fluctuated within a narrow range between 6.7676 and 6.7766.

“Recent trend of RMB spot market is hard to grasp. The dollar, if linked to a package of currencies, would push RMB to devaluate. The decline yesterday should be an amendment to the previous appreciation, which was too rapid.”

Meanwhile, on overseas non-deliverable market,5:07pm Beijing time yesterday, the dollar against the RMB NDF reported 6.6700, slightly weaker than the 6.6690 yuan at close of the previous day. This indicates that anticipation for RMB appreciation is further weakening.----Forex Currency

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By Amanda