Asian traders said the morning to see at least two Chinese accusing him of selling dollars after the dollar down, it has been reported to sell the dollar from 6.4580 to 6.4590 in a position to stabilize the exchange rate.
China's central bank on Monday the dollar / yuan central parity set at 6.4495 yuan, higher than last Friday's 6.4358 yuan.
US dollar against the RMB spot exchange rate chart daily chart
Offshore renminbi selling pressure continued to deepen, down 285 points in early trading once to 6.5608. 16:45 GMT, the CNH fell 0.29 percent to 6.5514, the sixth consecutive trading day down. New York traders said the market has been gradually digested the impact CFETS RMB Exchange Rate Trend Index, in turn may therefore pay more attention to increasing volatility.
Offshore renminbi volatility curve upward sharply compared to a week ago, short-term volatility rose significantly:
One-month period the implied volatility rose 53.5 basis points to 7.46%, reaching the highest since September 11; 1-year volatility rose 42.5 basis points to 7.425 percent, the highest ever recorded.
Credit Agricole strategist Dariusz Kowalczyk in a report to clients, wrote that China's foreign exchange policy is likely to continue to allow a gradual rise in implied volatility is expected to expand the yuan trading band to 3% in the first quarter of 2016. 7.55 points recommended buying one-year dollar / offshore renminbi implied volatility, target price 10.0, stop located at 6.2.
Onshore / offshore renminbi exchange differences continued at a high of 1,000 points, Germany's Commerzbank economist Zhou Hao and Kai Wei Ang wrote in the report, currently there is no perfect mechanism offshore onshore exchange differences arbitrage. China will allow the dollar / offshore yuan to rise, while limiting the dollar / onshore renminbi at some point in order to reduce exchange differences.
TD Securities emerging markets strategist Sacha Tihanyi in a report on December 11, wrote, too dovish Fed rhetoric terms of raising interest rates, could lead to a weaker dollar, the yuan short pressures. If the market outlook for the Fed to raise interest rates to re-adjust, short offshore renminbi better option might by is the euro.
