According to the latest market data, on January 26, the onshore RMB exchange rate closed at 6.9572 against the US dollar at 16:30, up 70 basis points from the previous trading session.
Reasons Behind the RMB Strengthening
This recent appreciation of the RMB is mainly driven by stronger signals of China's economic stabilization, a weakening US dollar index, and market expectations of a slowdown in Federal Reserve rate hikes.
- Improving domestic economic indicators
- Decline in the US dollar index
- Enhanced investor confidence globally
In the coming period, the RMB exchange rate is likely to remain resilient with a bullish trend, positively impacting trade and investment.