SMM News: the Asian session is updated at 16:30 on the 6th, while the US segment updates the onshore and offshore RMB market, and a spokesman for the Ministry of Foreign Affairs of China speaks and comments.
The official closing price of the onshore yuan against the dollar was 6.7666 on Monday, Beijing time, down 300 points from the official close of the previous session and narrowing its afternoon decline, falling more than 600 points at one point in intraday trading. It was 316 points lower than the closing price of the previous session.
The offshore yuan fell sharply on Monday morning, falling below the 6.82 mark at one point. But it rebounded by more than 400 points in the afternoon. In the early morning of the 7th Beijing time, US stocks entered the late stage of afternoon trading. After the good trade news, the offshore RMB recovered 6.77 points at one point, rebounding more than 500 points from Monday's low.
The renminbi hit a more than two-and-a-half-month low of 6.7344 against the dollar on Monday, down 58 points from 6.7286 in the previous session.
In addition, the people's Bank of China launched a 20 billion 7-day reverse repo operation, no reverse repo due today.
On Monday afternoon, Chinese Foreign Ministry spokesman Geng Shuang said at a regular press conference that "the Chinese team is preparing to go to the United States for the next round of economic and trade consultations," after the people's Bank of China announced a reduction in the standard for small and medium-sized banks. China hopes that China and the United States will make joint efforts to reach a mutually beneficial and win-win agreement on the basis of mutual respect. This is not only in the interests of the Chinese side, but also in the interests of the US side, and is also the general expectation of the international community. "
Monday's midpoint, which has little special response to overseas comments, will focus on the level of tomorrow's mid-price to judge regulators' intentions. In the afternoon, China's foreign ministry responded to some of the concerns, although the renminbi may continue to come under pressure in the short term.
The following is the real-time market in Beijing time plate, the most recent update is at the top:
[05:02 on the 7th]
By 04:59 Beijing time, the offshore renminbi (CNH) was trading at 6.7730 yuan against the dollar, down 376 points from late Friday in New York, after trading in an overall intraday trading range of 6.8218 to 6.7682 yuan.
[03:26 on the 7th]
After the positive news from the Chinese delegation, the offshore renminbi rose above 6.77 in intraday trading and narrowed its decline to less than 360 points in the last 24 hours.
[23:50 on the 6th]
At 23:30 Beijing time, the onshore renminbi closed at 6.7622 yuan against the dollar (CNY), down 272 points from the close on April 30 and the eve of May Day. Volume was $33.857 billion, up $10.966 billion from Tuesday.
On the 6th, the onshore renminbi approached 6.80 against the US dollar as low as 6.80, with the biggest drop of about 630 points in the day. By the end of the night, the decline had narrowed by about 360 points.
At one point, the offshore renminbi fell nearly 880 points at the 6.82 mark, while the onshore renminbi hovered at 6.78 after night trading, narrowing its daily decline to less than 420 points.
The onshore renminbi's decline against the dollar narrowed further to 6.7628.
The offshore yuan rose 120 points to 6.7871 against the dollar in the short term. At the same time, the onshore renminbi also rose more than 100 points against the dollar in the short term, as high as 6.77.
The offshore renminbi rose against the dollar to 6.7984 after better-than-expected and previous figures for China's Caixin service sector in April.
The onshore yuan opened at 6.7880 against the dollar, down 530 points from Friday night's closing price of 6.7350, its lowest level since January 23.
In early Asian trading on Monday, the offshore renminbi continued to fall, falling below 6.82 at one point, the biggest drop since January 2016 and more than 800 points lower than last week's close.
Societe Generale Securities commissar Lu said earlier that under the fundamental differentiation, the market fixed the Fed's expectations of a rate cut this year, and the dollar index may rise again after a short-term adjustment. The dollar rallied at the top of the volatility against the renminbi, leading to a rebound in short-term volatility. Under the resilience of domestic fundamentals, the RMB may remain strong relative to non-US currencies, and the effective exchange rate of the RMB is expected to follow the US dollar index.
Guan Tao, senior researcher of the China Financial 40-member Forum and former director of the balance of payments Department of the State Administration of Foreign Exchange, believes that in the first quarter, the average intermediate rate of the RMB exchange rate rose compared with the previous quarter, and the supply of foreign exchange in the domestic market exceeded demand again. The interbank market tends to be active, enhance the liquidity of the market, and at the same time help to give full play to the function of the market.
In fact, in recent years, the status of the dollar as a reserve currency has been declining, and the RMB has increasingly become the new favorite of all countries.
Previous data released by the International Monetary Fund (IMF) showed that by the fourth quarter of 2018, the share of the dollar in the world's central bank foreign exchange reserves had fallen to 61.7 percent from 72 percent in 2000, not only the third consecutive quarter of decline. It fell to its lowest level since 2013.
During this period, the share of the euro, yen and renminbi in foreign exchange reserves has all increased. In particular, the share of foreign exchange reserves in the renminbi has risen to 1.89 per cent, surpassing the Australian dollar at 1.62 per cent and the Canadian dollar at 1.84 per cent, the highest level since IMF reported renminbi reserve assets in October 2016.
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