Prospects for the RMB exchange rate appreciation is placed under the pressure of a more substantial, and the Japanese Finance Ministry to stop the yen’s gains, after a lapse of 6 years to take action to intervene in currency markets alone, at present, investors in financial markets will undoubtedly be both nerve Asian currencies, which may be affected.

Record high of RMB for 5 days

This week four, the central parity of RMB against the U.S. 5th day exchange reform since the 2005 record high of 6.7181 offer 69 basis points higher than the previous day, but on the rise, the performance of yesterday, slightly less than the first few Daily trading day gains of more than 100 basis points.

RMB rally this week that domestic traders were surprised, even though experts said the appreciation of the RMB at this time there is the need to prevent domestic inflation, but investors still can not ignore the United States to exert external pressure on the RMB exchange rate prospects. Local 16, United States, the U.S. Congress on a two-day hearing on the valuation of the yuan will be over, many members of Congress attempting to use the hearing will put pressure on RMB appreciation on China or impose punitive tariffs on imports.

However, the Chinese Ministry of Foreign Affairs yesterday stressed that the pressure on the RMB exchange rate can not solve the problem, and may even be counterproductive, Foreign Ministry spokesman said that through equal consultation should be to solve the problem.

Despite the pressure of the outside world, market participants believe that, whether from the perspective of preventing hot money, or reflect the volatility of secondary features two-way exchange reform, the central parity Bukuai the current rate continues to rise, but most likely usher in a wave of callback .

Yen loss help

In addition to the renminbi, the Japanese Ministry of Finance Wednesday to sell the yen through massive intervention on the yen’s gains is the market focus. Japanese authorities say yen rally has a serious impact on Japanese exporters, and began to threaten Japan’s economic recovery, this intervention is to smooth fluctuations in the foreign exchange market over a one-way.

Yesterday, the Japanese Finance Ministry officials stressed that the Japanese government will again intervene in currency markets when necessary. But yesterday, the dollar remained at 85 yen above the shock, traders believe that the U.S. dollar against the yen may fall below 85, will once again rise to the Japanese government intervention.

Japanese money market data, the official selling of the yen Wednesday totaled 1.76 trillion to 1.86 trillion yen. This is since 2004, Japan’s first intervention in currency markets, large-scale sell-off earlier in the day made more significant effect than the Japanese yen Wednesday from the 15-year low of 82.56 back to 85 or more days 3% decline.

Japanese Prime Minister Naoto Kan on yesterday in the Japanese business federation said in a statement, can not tolerate excessive yen volatility, if necessary, to take decisive measures against the yen gains. Analysts expect the Japanese may have further interventions. Net foreign exchange analyst at the Asian chapter of David on the “First Financial Daily” reporter pointed out that the attitude of the government officials from Japan, the Japanese government’s determination to suppress the yen is very strong, intervention may be longer duration and higher frequency.

However, in Japan alone, there are a number of different views. The White House, Treasury and Federal Reserve officials have declined to comment on Japan’s intervention, but Japan may be difficult to obtain support. In addition, visiting Switzerland, the euro-Claude Juncker when asked about the views of the Japanese intervention in currency markets, he said, similar to Japan to sell yen for unilateral action to address global imbalances is not the right way. Analysts stressed that the U.S. action on the attitude of the Japanese authorities is crucial, because past experience shows that the Japanese tend to have little effect alone.

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