remain choppy within broader ranges, while global equities and bond yields are
off the highs.
was front and center following the coup attempt on Friday evening that foiled within
RMB hit a 5-year low after U.S. job
Posted by Paul Kao
The RMB hit a 5-year low of 6.7050 against
the USD after unexpectedly stellar U.S. Non-Farm Payroll (NFP) jobs data was
released last Friday
The RMB hit a 5-year
low of 6.7050 against the USD after unexpectedly stellar U.S. Non-Farm Payroll
(NFP) jobs data was released last Friday.1 It was a continuation of the RMB’s downtrend after
the recent Brexit vote — in spite of the recovery we saw in global FX and
Near-term, we might
see the USD/CNH move higher to the low 6.70s. So, companies that need to
convert RMB to USD may want to consider taking advantage of any USD
retracement. And companies looking to
lock in FX rates for RMB purchase could execute their buys in increments to
take advantage of a possibly higher rate.
The medium- to
long-term outlook for USD/CNH is still moving higher in an orderly fashion with
a possible target of 6.75 by year-end. The People’s Bank of China (PBOC) allowed the RMB to depreciate after the Brexit vote,
but they seek stability and will prevent the RMB from depreciating too fast during
the rest of this year.
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