Offshore RMB exchange rate against the US dollar plunges

As the dust settled on the US election, the global exchange rate market was shaken. Among them, the US dollar rose strongly, and the US dollar index once rose by more than 1.8% during the day. Global non-US currencies are facing huge depreciation pressure, and emerging market currencies are under obvious pressure. Among them, the Mexican peso led the decline, falling more than 2% against the US dollar, hitting a two-year low.

The impact on the offshore RMB exchange rate was almost synchronized. As of 16:30 today, the US dollar against the offshore RMB exchange rate was 7.1765, with the lowest intraday being 7.0907, and the maximum intraday amplitude rarely exceeded 950 basis points.

Analysts believe that the current market generally bets that the US dollar will continue to strengthen. Deutsche Bank pointed out that with the Republicans controlling the Senate and the House of Representatives, the US dollar will have greater upside space, and will also cause greater pressure on emerging market and trade-related currencies. Some analysts also reminded that the actual effect of Trump’s policy after implementation remains to be seen, and the strength of the US dollar may not be able to be maintained for a long time, but it obviously has a supporting effect in the short term.