Foreign Media: The People's Bank of China has set the RMB exchange rate midpoint against the US dollar at 6.8487, reaching its highest level in nearly three years since April 2023, and strengthening further from the previous day's 6.8562. This move aims to promote the internationalization of the RMB, but the upward trend may pose pressure on China's vast export sector.
Analysts expect the RMB to appreciate to 6.65 by year-end. The downward pressure on the US dollar stems from policy uncertainty in Washington, concerns over the independence of the Federal Reserve, and issues regarding the sustainability of U.S. fiscal policy, with the dollar index having dropped from 119.61 at the beginning of the year to 97.97.
Mizuho Securities believes this adjustment reflects improved sentiment in Asian markets due to easing tensions in the Middle East, while expectations of U.S.-Iran talks have boosted confidence in the RMB.
Original Article: toutiao.com/article/1864539056249859/
Disclaimer: The views expressed in this article are solely those of the author.