RMB Middle Rate Rises to Six Month High

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A sizeable rise in the RMB middle rate against the US dollar has brought China’s official currency to its highest levesl in half a year.

On 5 June the RMB to USD middle rate rose 135 basis points to 6.7935, for its strongest performance in six months..

The onshore RMB to USD quote for interbank trading was 6.8048, for a gain of 0.05%, while the Hong Kong offshore figures has seen a decline of 0.07% to 6.7802.

Speaking to Caixin Construction Bank macroeconomic analyst Guo Jiayi said that in the second half of 2017 shifts in the economic fundamentals of China and the US as well as changing interest spreads would put pressure on the RMB. He expects the RMB remain stable overall against the US dollar, although with worsening fluctuations in both directions.

Li Huiyong, chief macroeconomic analyst with Shenwan Securities, said that on the basis of overall stability in the Chinese economy, the general weakness of the US dollar as well as counter-cyclical factors, he expects the RMB to outperform prior expectations, and the medium rate to rise from 7.2 to 7 by the year’s end.

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