Beijing time:2021-07-28 04:07
[New Tang Dynasty Beijing time July 28, 2021]On July 27, the RMB exchange rate against the US dollar fell 210 points to 6.504 yuan, a record low in more than three months. The overnight close fell by 282 points. Some traders believe that the regulatory turmoil of the Beijing authorities has caused market concerns to continue to ferment, coupled with market rumors that the United States will restrict U.S. investment in mainland China and Hong Kong, market panic is permeated and the yuan has plunged.
On the 27th, the onshore price of RMB against the US dollar closed at 6.504 RMB to 1 US dollar, down 0.33% from 6.4827 in the previous trading day. The low was 6.5133 and the high was 6.4738.
Some traders said that the CCP’s regulatory turmoil led to capital outflows, which had a significant impact on the foreign exchange market.
Reuters quoted a trader’s analysis on the 27th as saying that Beijing’s strict supervision of education and training and other industries has caused market concerns to continue to ferment. Following the “Black Monday”, the Chinese and Hong Kong stock markets continued to plummet on the 27th, and risk aversion sentiment rose sharply. Coupled with the news in the afternoon that the U.S. will restrict U.S. investment in mainland China and Hong Kong, market panic is permeated and the renminbi plunges.
Market rumors on the 27th said that US funds are dumping related assets in Hong Kong and China, and the US may restrict US funds’ investment in Hong Kong and mainland China.
Following the rapid spread of rumors, China’s treasury bond futures plunged in the afternoon on the 27th, and the 10-year treasury bond yield increased to 5bp. Offshore and onshore renminbi continued to fall, falling below the 6.52 and 6.51 mark respectively, and then gradually fell. Narrowed down.
Reuters quoted the analysis of a trader at a Chinese bank. The stock market in China and Hong Kong has fallen sharply recently, and the market has become more risk-averse. After the spread of the above rumors, panic in the market has been aggravated. If the above rumors are confirmed, the RMB will continue. Fell.
Some traders also said that the RMB fell below the important support level of 6.5 against the US dollar, which opened up the room for the RMB to fall: “If it does (such as rumors) do so, 6.5 is unstoppable… Now it has reached the critical position of the 200-day moving average. And this time (the downtrend) is too strong.”
As of 13:6 on July 28, Beijing time, the onshore price of RMB was reported at 6.5073 RMB to 1 U.S. dollar; the FOB price was reported at 6.5145; the central parity of RMB, which represents the official attitude of the Chinese Communist Party, was reported at 6.4929.
(Editor in charge: Wen Hui)
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