Ikon Forex – Affected by the expectation of the low central parity rate, the forex rate of USD/RMB slumped at the noon session in the forex market on Friday (August 6). The central parity rate of USD/RMB was set at 6.7730, and that on Thursday (August 5) was at 6.7783.
In the inquiry forex market, the forex rate of USD/RMB was at 6.7693, and this was the first time for this forex price to break the psychological support point at 6.7700 since July 5 in the forex market.
A forex dealer in Shanghai branch of the Bank of Asia said it was within the expectation that the central parity rate would slump, but the amount of the decrease was still over their expectation in the forex market.
Most of the interbank forex dealers were reducing their long position in USD in the forex market, he added. But so far the key issue of this problem would be that whether PBOC would stand the low forex rate level of USD/RMB.
This forex dealer said if PBOC lead capitals to support USD in the forex market, the forex rate of USD/RMB would test downward at the low point after the reform of the exchange rate at 6.7676.
The forex rate of USD/RMB was at 6.7690/93 at 13:32 Beijing time.
Edited by Laura.