Financial News: Prices bottomed out and rebounded, and the RMB exchange rate formed subsequent support

The Financial News said that prices bottomed out and rebounded, the RMB exchange rate formed subsequent support, and market expectations improved significantly. Recently, there have been many highlights in macro data, especially the bottoming out of price data, which is mutually confirmed by the effective implementation of various countercyclical adjustment policies and the accelerated recovery of the domestic economy. The exchange rate is basically stable and has a solid foundation. The impact of domestic and foreign interest rate differentials has gradually been reflected. The early decline in prices opened up room for domestic interest rate cuts, while the US dollar has been raising interest rates rapidly for more than a year. The interest rate gap between China and the US continues to widen, and the RMB exchange rate is under greater depreciation pressure. As domestic prices gain momentum and the US dollar interest rate hike cycle comes to an end, the interest rate gap between China and the US is expected to narrow, and the RMB exchange rate will show positive improvement after bottoming out. Overall, the fundamentals are favorable and will help the exchange rate to stabilize. The decline in China’s interest rates has effectively stimulated market demand, further smoothed policy transmission, and continued to consolidate the economic rebound. The exchange rate is a reflection of the overall economy and internal and external factors. As fundamental conditions continue to improve, the stability of the RMB exchange rate will be stronger.