Renminbi hits new high against US dollar

On Thursday, the China Foreign Exchange Trade System (CFETS) registered a closing rate US$1 to 7.9925 Yuan, creating new record high. Previously, the highest rate 7.9943 Yuan against US$1 set last Friday. The trader pointed out the climbing RMB exchange rate related to the weakening US dollar on the overseas market.

A trader from a Chinese-funded bank in Beijing expects that the US dollar will settle around 7.99 to 8.01 Yuan in the remaining days of this month. He believes that the Federal Reserve's decision on the August interest may make it possible for the US dollar to break through the 8 Yuan barrier.

Many banks who bought US dollars in the first half week discovered the purchase price had increased and were therefore cautious about selling them.

By People's Daily Online