The existence of foreign exchange reserves means that the RMB exchange rate is easy to depreciate and hard to rise

On June 11, the yuan closed at 6.3914 yuan against the U.S. dollar, a 58-point depreciation from the median price for two consecutive days. Yesterday, the U.S. CPI hit a new high in the past 13 years, and the Fed may have tightened its monetary policy. The U.S. dollar index encounters strong resistance near 90 and cannot break through for a long time. The possibility of a sharp rebound in the future cannot be ruled out. This afternoon, northbound funds changed their net buying situation in the first three days and accelerated their exit. They sold a net of 3.032 billion yuan throughout the day. The spot exchange rate of the renminbi against the US dollar broke through 6.39 yuan in late trading.

According to market participants, large-scale foreign exchange purchases are still active today. Yesterday China Development Bank issued domestic US dollar bonds, and the time when foreign exchange deposit reserves will be deposited after the Dragon Boat Festival holiday. The RMB exchange rate is more sensitive to the liquidity supply and demand gap in US dollars. It is easy to be demoted and hard to rise.

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