By continuing you agree to eChinacities's Privacy Policy .
Sign up with Google Sign up with FacebookQ: Will the dollar continue to fall against the yuan?
Every Republican since Bush senior seems to tank America's economy. Trump seems to be doing the same. The dollar started the year 1=6.9 against the RMB but right now 1=6.66. Will this continue. For now I'm gonna hold the next few months in China to see what happens.
6 years 45 weeks ago in Business & Jobs - China
Yeah it will be worse by 2018, this why Ive been moving money out while I can get it at this rate.
It's not US$ this time, but RMB ...:
http://www.zerohedge.com/news/2017-06-01/seven-theories-explaining-recen...
http://www.zerohedge.com/news/2017-06-01/china-fireworks-continue-yuans-...
It was PBOC response to Moody's RMB&HK$ downgrade a week ago.
Englteachted:
Maybe China is manipulating the value in order to slow down out flows
icnif77:
Chinese eased control on Bitcoin last week ... and they changed the way how they value/count offshore RMB ... after Moody's. It's all in 'fog' and nobody really understands what they're doing now. That's why 1st link state '7 theories ....'
I just came from the China Bank, and I got 6.783 yuan per dollar exchange. Who gave you 6.66? That is too low!
icnif77:
1 United States Dollar = 6.6869 Chinese Yuan |
Minute ago ... the difference you got is ''spread between 'buy'&'sell''.
http://www.barrons.com/articles/hsbc-sees-modest-fall-and-greater-volati...
Strategist Paul Mackel notes:
The recent policy-induced decline in USD-CNY suggests Chinese authorities have a strong desire to expunge one-way CNY depreciation expectations lingering among Chinese residents. This episode is different from what happened in early January – policymakers are being proactive today, whereas they were reacting to excessively bearish CNY sentiment and positions in the offshore market against a strong USD backdrop then. We now think it will be difficult for USD-CNY to breach the highs of around 6.95 reached in late December and in early January. As a result, we lower our USD-CNY forecasts to 6.90 for end-2017e and 7.00 for end-2018e, from 7.10 for both years previously.
The level, however, is lower than the CNY6.7982 per dollar at which the yuan currently trades.
HSBC doesn’t expect the yuan’s recent strength to translate to lower volatility in its exchange rate against the dollar.
We do not believe the recent decline in USD-CNY will be followed by a period of extraordinary stability and low volatility in the exchange rate, as was seen in March to early May. Rather, the authorities appear ready to introduce more two-way flexibility in the exchange rate around recent levels. The current global and domestic macro backdrop – a soft USD trend, recovering global trade, a relatively resilient Chinese economy, and stable FX reserves – is conducive to such an experiment. USD-CNY may fall further in the near term, to 6.70, before rebounding after the leadership transition in autumn, to end the year at 6.90.