The exchange rate of RMB to USD is fluctuating upwards, and there may still be room for appreciation in the short term

Recently, the exchange rate of RMB to USD has shown a fluctuating upward trend. Wind data shows that as of the close on March 12th, the onshore RMB to USD exchange rate rose by 0.54% in March, once rebounding from near "7.3" to around "7.2". Looking over a longer period, compared with this year's lowest point (7.3326), the onshore RMB to USD exchange rate has risen about 1.19%. The offshore RMB to USD exchange rate also showed a similar trend; as of the close on March 11th, it increased by 0.93% in March. "In recent trading days, the RMB-to-USD exchange rate has been fluctuating upwards mainly due to a sharp drop in the US dollar index and general appreciation of non-US currencies recently; consequently, Renminbi also went up," said Wang Qing, Chief Macro Analyst at Orient Securities.