US Dollar/Onshore CNY 1-Year Forward Point Hits Record High of -1710, a New High Since October 2024
Grontology August 5th | US Dollar/Onshore CNY 1-year forward point hits record high of -1710, a new high since October 2024, continuing the big rebound seen on Monday. Combining opinions from multiple
Grontology August 5th | US Dollar/Onshore CNY 1-year forward point hits record high of -1710, a new high since October 2024, continuing the big rebound seen on Monday. Combining opinions from multiple traders, the narrowing interest rate differential between onshore and offshore currencies since last Friday has led to an upward price trend in forwards, with supply and demand finding balance below last year's peak.
Traders say that since July, Chinese major banks have reduced their dollar-dominated sales in 1-year forward markets, causing price fluctuations to be more influenced by interest rate and exchange rate expectations.