RMB rebound trend to continue
China DailyThe renminbi has rebounded moderately since late July, thanks to a slight improvement in the external environment and rising market confidence boosted by a number of economic stimulus measures, and this trend is likely to extend into the following months, experts said. Data from market tracker Wind Info showed that the onshore USD/CNY pair has risen 0.84 percent from July 25 to Friday, while the offshore RMB has gained 1.7 percent during the same period. Recent weak US economic data, combined with a likely interest rate reduction by the US Federal Reserve, have provided more flexibility for China's monetary policies, experts from AVIC Securities said. Changes have been taking shape in the external market to favor the RMB since July, said Li Liuyang, a forex analyst at investment bank China International Capital Corp. As US inflation cools, market expectations for the US Fed to cut interest rates in September have risen. Meanwhile, a number of policies to stabilize economic growth and the RMB's value have boosted confidence in the foreign exchange market, said Zhong.
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