Foreign traders have mixed feelings as yuan depreciates

The yuan continued to weaken against the dollar.

On the evening of June 28, the onshore yuan fell below the 7.25 mark, down nearly 400 pips during the day; offshore yuan fell below the 7.26 mark, down more than 400 pips during the day, refreshing more than half a year’s lows.On June 29, the yuan’s mid-price quoted at 7.2208, a downward adjustment of 107 pips, depreciating to the lowest since November 10, 2022, the yuan’s central parity was 7.2208, a downward adjustment of 107 pips, depreciating to the lowest since November 10, 2022. The offshore yuan against the dollar short-term rapid rise at 7.23, and then fell below 7.25.

It is worth noting that this year, both onshore and offshore yuan against the dollar exchange rate cumulative decline has exceeded 4.6%.

In fact, this year, the yuan against the dollar exchange rate first rose and then fell. January recovered 6.70 mark after the shock fall, and then kept in the 6.8, 6.9 range hovering forward, but from May so far there has been a wave of obvious decline, also makes the yuan exchange rate fell into the 7 range again.

For the yuan "broken 7", plant letter investment chief economist Lian Ping that this is mainly caused by the United States and China "diametrically opposed" monetary policy, superimposed on the market for the future of economic growth there are worried about the sentiment, resulting in a short-term depreciation of the yuan exchange rate. The exchange rate depreciated in a short period of time.

"But the current exchange rate fluctuations are still within a reasonable range, the decline has not yet reached last year’s extreme value, the market does not need to be overly panicked." Lian Ping further explained.