BIZCHINA / In Chinese Press |
RMB exchange rate down 387 points in three days(chinadaily.com.cn)Updated: 2007-06-12 17:08 During the last three trading days, the daily benchmark, or the central parity rate of renminbi (RMB) against US dollar, dropped 387 basis points. The daily benchmark hit the highest of 7.6398 yuan on June 6. But it was reported at 7.6502, 7.6656, and 7.6785 respectively on June 7, 8 and 11.
The second round of the China-US Strategic Economic Dialogue led to the continuous appreciation of the RMB against the US dollar in May. So after the conclusion of the dialogue, the recent depreciation of RMB is not surprising, Zhang added. Ye Yaoting, a foreign exchange analyst from Bank of Communications, attributed the rapid RMB depreciation to the US dollar's rising value in the global market. A dealer from a foreign-funded bank indicated that China's big trade surplus and rising consumer price index (CPI) in May are expected to back up the current level of the RMB exchange rate. In May, China-US trade surplus surged to US$22.45 billion, up 33 percent from
April¡¯s US$16.88 billion. Furthermore the CPI in May increased 3.4 percent year-on-year, which may lead to the anticipation of an
interest rate rise. (For more biz stories, please visit Industry Updates) |