Multiple factors drive the strength of the RMB "two-way volatility" remains the main tone

Since the Federal Reserve Chairperson Powell "released the pigeon" to the global market last Friday, on August 25, the onshore RMB exchange rate rose strongly against the US dollar. It opened and broke through several levels in a row, closing at 7.1517, up 288 basis points from the closing price of the previous trading day. Analysts believe that the strength of the RMB is driven by multiple factors such as the decline of the US dollar index, the sharp rise in the central price and the recovery of sentiment in the capital markets. Looking forward to the market outlook, the trend of the US dollar index is still a key variable in the global foreign exchange market, but the core factor that determines the current RMB exchange rate is still endogenous momentum. Under the combined influence of internal and external factors, "steady rise" and "two-way fluctuation" will continue to be the main tone of the RMB exchange rate trend. (Shanghai Securities News)