RMB 0.86% appreciation against US dollar after exchange restart

RMB exchange rate with the United States dollar 6.77 new innovation high, the daily fluctuation elasticity is obviously enhanced, there is a trend of rising and descending two-way fluctuation more obvious "Caixin Net" (reporter Horon) the RMB exchange rate with the dollar is further enhanced.　　August 9, the central bank authorized the China Foreign Exchange trading Center to release the renminbi against the U.S. dollar intermediate price of 1 U.S. dollars to 6.7685 yuan, higher than the previous session of 45 basis points, a new record since July 2005.　　The renminbi has risen 0.86% against the dollar, compared with June 19 when the central bank announced further reforms to the renminbi's exchange rate regime.　　The main reason for the yuan's higher-than-dollar exchange rate is that the U.S. August 6 non-farm payrolls fell far more than expected, with the dollar index under pressure falling to a minimum of 80.08 per cent. Compared with the dollar's weakness, the euro has continued to strengthen recently, with the euro rebounding to near three-month highs of 1.33. With the euro strengthening, the renminbi has fallen to its lowest point against the euro since May 4.　　August 9, China Foreign Exchange trading Center announced the renminbi against the euro in the middle price of 1 euros to 8.9920 yuan.　　One months after the resumption of the transfer, the exchange rate of RMB against the dollar in the inter-bank foreign exchange market increased markedly, with a maximum of 329 basis points, a minimum of 34 basis points, and an average of 101 basis points, which was 77 times the average 1.3 times basis points during the 2005 transfer to the end of July 2008. It is more obvious that there is a rise in the renminbi against the dollar and a two-way fluctuation.　　June 21 to August 9 in the 36 trading days, the renminbi exchange rate against the United States dollar 23 trading day appreciation, 12 trading day depreciation, 1 trading day flat.　　The central bank reiterated in its two-quarter monetary policy performance report last week (August 5) that the current renminbi exchange rate does not have a basis for significant volatility and change.　　On the future trend of the renminbi exchange rate, China International Finance limited August 9 reported that the renminbi will appreciate 3% against the dollar by the end of the year.　　Wang Tao, China's chief economist for UBS Securities, predicts a greater appreciation, the renminbi is expected to appreciate gradually in the next few months, and by the end of this year a 4% rise in the dollar is likely to be achieved sooner; if the euro remains weak but remains relatively stable, the renminbi will appreciate by 5% in 2011. If you look at the decline in the renminbi against a basket of currencies, Wang Tao predicts that the trade-weighted renminbi effective exchange rate index will appreciate by 5% per cent in the next few years.