The RMB continues to strengthen against the US dollar, reaching a nearly three-and-a-half-year high.
Date:2026-08-28View:2Tags:Pipe fitting,Alloy steel pipe,Epoxy pipe
On August 20, the onshore RMB briefly broke through 6.72, reaching 6.7203, while the offshore RMB simultaneously surged to 6.7205, both setting new records since February 2023. It continued to rise in the following days, with the offshore RMB reaching a high of 6.7179 intraday on August 21, bringing its year-to-date appreciation to nearly 3.85%.
This round of appreciation is driven by multiple factors, with the core logic being a shift in pricing weights:
Externally, the US dollar index has weakened, recently falling below the 99 mark, and expectations of a US interest rate cut have increased, leading to capital outflows from dollar assets.
Internally, the surge in demand for foreign exchange settlement by export companies has become the dominant force. With a high trade surplus, the market estimates that the outstanding amount of funds awaiting settlement exceeds $760 billion, and companies are converting dollars into RMB, creating sustained buying support.
The dominant factor in RMB pricing has shifted from the "China-US interest rate differential" to the "trade surplus." The desired policy range is likely between 6.6 and 7.0. The direction of appreciation remains unchanged, but the rate of increase will be controlled.
