But the dollar's fall run is relatively stronger yuan

March 17, the China Foreign Exchange Trading Center announced that the renminbi to the dollar for 7.0815 yuan, ending a 67 revaluation, the renminbi to the dollar exchange rate also hit the third consecutive day that a new high since the reform. As of yesterday, the renminbi to the dollar since the revaluation have been accumulated 14.52 percent, this year has been the appreciation of 3.15 percent. Dealers said there are, the dollar plummeted in the international market, making the RMB revaluation pressure surge, with a further deterioration of the U.S. economy, the dollar will continue to downlink, the RMB exchange rate is expected to continue to new heights. However, this year, the renminbi against the euro, the Japanese yen have seen substantial devaluation of the dollar, a new high of RMB can not obscure the relatively weak.
Weak dollar short term can not be reversed
Weekend news, JP Morgan Chase announced the acquisition of the worsening of the mobility of Bear Stearns, the United States Federal Reserve Board (FED) Sunday lowered the discount rate, and open the major investment banks on the discount window lending, this is the first time since the Great Depression use of financial instruments. Fed Administration's measures not only rekindle confidence in the market, investors worry it could lead to further deterioration of the economic situation will be, by selling the dollar. Yesterday, the United States fell to historic lows 70.68 means, the euro / dollar 1.5904 yuan highest see the dollar against the yen on electronic trading platform EBS as low as 95.77, or more than 3 percent intraday. Dollar plummeted, market speculation increased risk of international joint intervention, but the majority of domestic researcher pessimistic about the dollar. "The United States economy will continue to deteriorate, the dollar worst time has not yet come," the chief bond strategist at the securities Yangyongguang in an interview with reporters that, in his view, the dollar will continue to be two tests. First, the expected April-May is 08 times the amount of bad loans on the loan period, the United States economy will continue to deteriorate, the Fed will continue to cut. Currently, the United States federal funds rate futures show that the Federal Reserve policy meeting Tuesday in a rate cut before the end of 125 basis points less risk, and 100 basis points cut the risk was 100%, lower interest rates would make the dollar's decline. Second, the United States Government has been tolerance weak dollar policy, and the dollar plummeted makes pegged to the dollar damage to the national interests, once those countries that do not pegged to the dollar, the dollar's international status will probably suffer great impact. Therefore, Yangyongguang forecast weak dollar at least until the end of the second quarter will not be reversed, but with the outbreak of the debt through with the third quarter of the United States economy stable, the Fed would not rule out the third quarter interest rate increase, will be彼时The dollar may be an inflection point.
Weak dollar makes increasingly strong appreciation of the renminbi is expected, and the Sino-US inverted yield also makes profit flows, the renminbi to the dollar exchange rate movements are passive things. Yesterday, the renminbi to the dollar exchange rate has been approaching U.S. 7.08,7.0 crossing has been looming. Inquiry trading, the dollar last week on the continuation of weak yuan, the lowest exchange rate of 7.0806 see.