RMB Rate Soaring up

 

In the last few days, the yuan has suddenly risen sharply against the US dollar!

 

In particular, on Friday, August 2nd, the exchange rate of the yuan broke through the 7.2 mark, which is a 2% increase converted to a percentage!

 

 

The exchange rate of the yuan suddenly skyrocketed, so what is the situation of other currencies against the yuan? Next, please allow Panda to do some analysis:

 

Japanese yen: Soaring

 

On July 31, the Bank of Japan's two-day monetary policy meeting concluded with a decision to raise its policy rate to 0.25% from the current 0% to 0.1%.

 

 

The BOJ's decision to raise interest rates usually has a direct effect on the yen exchange rate. A rate hike implies a higher cost of using funds, which may attract more international capital inflows to Japan, which in turn pushes the yen to appreciate.

 

Looking back at other countries in the past to raise interest rates, when the central bank of a country to raise interest rates, the country's currency tends to be in the short term a clear trend of appreciation, which also just confirms the current yen's current soaring trend.

 

Australian dollar: Persistent Plunge

 

Some time ago, the Australian dollar against the Chinese yuan exchange rate touched the 4.9 mark, about to get to the turning point: 5.

 

 

However, the Australian dollar's upward momentum has come to an abrupt end, and over the last week or so, the Australian dollar has seen a sustained plunge, with the AUD/CNY now coming in at around 4.74, and looking at the rate of decline of the AUD against the US dollar, it is likely that the AUD/CNY exchange rate will fall further.

 

In recent times, Australia's economic data is not optimistic, economic growth is stagnant, the Australian Federal Reserve is unlikely to continue to raise interest rates, the Australian dollar exchange rate plummet is related to this point.

 

Canadian dollar: Going down All the Way

 

Down down down! Overnight, the Canadian dollar plummeted to the point where many of our friends could not believe their eyes!

 

 

On July 25th of this year, the Bank of Canada cut its benchmark interest rate by a quarter of a percentage point to 4.5%. After that, the Canadian dollar against the Chinese yuan exchange rate immediately appeared obvious a decline, the lowest exchange rate fell to 5.21, the actual exchange rate slightly higher than 5.23.

 

For those international students waiting to pay tuition fees and prepare for living expenses after the start of the school year in September, they should definitely thank themselves for not exchanging foreign currency until now!

 

For friends in China who need AUD for daily entertainment, or even to pay off a portion of mortgage with interest rate up to 6 percent, is also a lot of excitement and joy .......

 

Although the actual rate could be higher than 5.16, it should be lower than 5.2! So it’s still a good deal.

 

British pound: Another Bad Day

 

On August 1, the Bank of England announced that it was cutting its benchmark interest rate by 25 basis points from 5.25% to 5%. This was the first rate cut since the March 2020 Pandemic outbreak.

 

 

After the rate cut, the British pound showed a weakening trend, and the GBP/USD exchange rate fell to a three-week low of about 1 GBP to 1.27 USD.

 

Hong Kong Dollar: Sudden Dive

 

The Hong Kong dollar to Renminbi exchange rate has also seen a wild fall.

 

 

The Hong Kong dollar adopts a linked exchange rate system with the US dollar, so if the US dollar depreciates, then the Hong Kong dollar depreciates with it. Conversely, if the US dollar rises, the Hong Kong dollar rises with it.

 

Singapore dollar: More than Volatile 

 

On the day of August 2, the SGD rose steadily to 5.42 against the RMB again!

 

In recent months, the SGD has been hovering around 5.40 against the RMB.

 

 

In the latest Monetary Policy Statement of the Monetary Authority of Singapore (MAS), the MAS announced that it would keep its monetary policy unchanged, indicating that the SGD would continue to appreciate.

 

Therefore, the SGD will remain strong against various currencies in the near future, and there is still room for upside in the future.

 

New Zealand Dollar: All the Way down

 

Recently, the New Zealand Dollar is also falling all the way down, and even fell to a new low in recent month.

 

 

There are many factors that influence the movement of the New Zealand Dollar exchange rate. For example, whether or not the United States raises interest rates, whether or not New Zealand cuts interest rates, the export of New Zealand dairy products, and even New Zealand's tourism industry data will all have an impact on the movement of the New Zealand dollar. Partners who have the need to exchange foreign currency should seize the opportunity in time!

 

Finally, the strong rebound in the RMB exchange rate is related to the recent increase in the implementation of domestic macro-policies and the market's increased expectations for economic recovery.

 

 

In addition, because the U.S. economic data declines than expected, the market is putting more bets on a Federal Reserve rate cut in September. By the dollar, U.S. bond interest rates fell back, the strong rebound of the yen, while the European and U.S. stock market volatility triggered the demand for capital risk control, the market expectations on the trend of the RMB and asset tend to be optimistic.

 

With the rise of RMB exchange rate, the demand for remittance also increases. Panda would like to warmly remind all of you to pay attention to the safety of your funds when making remittances.

 

If you have any remittance needs, click to make remittances: