The RMB has the largest single-day increase this year

The RMB has the largest single-day increase this year. Stimulated by the U.S. dollar index falling for five consecutive days, the central parity rate of the RMB against the U.S. dollar hit a new high on the first trading day of May...

The RMB achieved the largest single-day increase this year. Spurred by the U.S. dollar index falling for five consecutive days, the central parity rate of the RMB against the U.S. dollar hit a new high on the first trading day of May. On May 2, the central parity rate of the RMB against the U.S. dollar was reported at 6.2082, a sharp increase of 126 basis points, the largest single-day increase this year. According to Xinhua News Agency, this is the third consecutive trading day that the central parity rate of the RMB against the US dollar has jumped, strengthening market expectations for future RMB appreciation. Industry insiders pointed out that the continuous decline of the US dollar index was the direct cause of yesterday's sharp rise in the RMB. In the medium to long term, in order to prevent large outflows of funds, the RMB will continue to maintain its upward trend. Financial expert Zhao Qingming told reporters that when the U.S. dollar index strengthens, the RMB is correspondingly stable, and when the U.S. dollar index depreciates, the RMB rises even more. This rule has not changed yet. Yesterday's central parity rose sharply, mainly due to the continuous decline of the U.S. dollar in the international foreign exchange market during the domestic market holiday. Data show that starting from April 25, the U.S. dollar index fell for five consecutive days, from the highest point of 82.94 points that day to the lowest point of 81.33 points on May 1. In just five trading days, the dollar index fell by about 1.9%. "The economic fundamentals this year are better than last year, which is the fundamental factor supporting the appreciation of the RMB." Zhao Qingming pointed out. Statistics show that in the past April, the central parity rate of the RMB against the US dollar continued to improve, rising by 481 basis points in a single month, or 0.77%, setting the largest single-month increase this year. Although some people are worried that the continued sharp appreciation will be detrimental to exports, it is undeniable that the continuous accelerated appreciation of the RMB in April has gradually strengthened the market's expectations for the appreciation of the RMB. Judging from the overseas non-principal forward (NDF) market, the depreciation expectation implied by the 1-year NDF is getting smaller and smaller, basically approaching the equilibrium level. Regarding the future, industry insiders pointed out that from the perspective of the central parity rate, the RMB is expected to appreciate slightly or stay flat against the US dollar in the future, and there is a high probability that the RMB will continue to strengthen in May. The Financial Research Center of the Bank of Communications pointed out that under the background of moderate economic recovery, China will continue to remain attractive to international capital. At the same time, the U.S. GDP data in the first quarter was lower than expected, which will drag down the U.S. dollar index to a certain extent. In addition, domestic residents and companies still have a strong willingness to settle foreign exchange, and the RMB will still face appreciation pressure. "However, from the aspects of RMB internationalization, access to international resources and avoiding large-scale capital outflows, substantial depreciation is not advisable." The Financial Research Center of the Bank of Communications pointed out that with the slight rebound in economic growth and against the background of flooding global liquidity, my country may still face a certain degree of capital inflow pressure in the future. Against this background, it is expected that the RMB exchange rate will continue to maintain a pattern of two-way fluctuations and slight appreciation in 2013.