RMB limit again today

RMB against the U.S. dollar from Tuesday for the second consecutive trading day fluctuations in daily touch lower limit of the range because investors in China's central bank will allow the yuan to further depreciation of the dollar is expected to promote the increased demand. Traders expect the yuan next month, only slightly down, at the end of the yuan against the dollar to 6.9000 yuan at around. Around 0730 GMT, the dollar exchange market inquiry reported 6.8868 yuan, higher than Monday's close of 6.8848 yuan, after trading between 6.8721-6.8870 yuan RMB, the yuan hit against the fluctuations in the range limit. Bank of China provides that the U.S. dollar against the daily fluctuations of the RMB exchange rate band should not be higher or lower than the 0.5 percent rate. Tuesday dollar / yuan rate at 6.8527 yuan, slightly higher than Monday's 6.8505 yuan. However, the above-mentioned U.S. over the previous two trading days of sharp price rise 213 basis points. China's central bank has in the past two months, the yuan against the U.S. dollar will stabilize at around 6.8300 yuan, the central bank of the recent sharp increase in the U.S. market appears to be adopted by the Chinese Government wishes to the devaluation of the Renminbi to boost economic signals. Dealers said trading Tuesday extremely quiet, as most banks are trying to buy dollars, the bank sold dollars are few. A Japanese bank in Shanghai, a dealer said some of the previous business profits will stay in China, hope to benefit from the appreciation of the RMB, the yuan, but now the trend of turning point occurred in these enterprises started to buy dollars, at least some of the sources of demand for dollars Here. Dealers also said that the dollar / yuan non-deliverable forward rate swap market and the territory of the exchange rate spread between dollar also prompted a rise in demand. A US-funded banks in Shanghai, a dealer said on the inside and offshore forward rate for the carry trade is almost bodies to make the banks to buy dollars. As the non-deliverable forwards than the spot rate forward rate premium is higher than premium, the agency can sell non-deliverable forwards at the same time in the territory of the market to buy dollars forward, so that almost no risk of the return . Recently, to further expand the premium, as a result of the market to digest the extent of the devaluation of the yuan is expected to increase. Taking into account the swap market in China than in more long-term market liquidity, institutions often use foreign exchange swaps for arbitrage, which increased the cash market, the demand for dollars. Offshore market, 1-year dollar / yuan non-deliverable forwards reported 7.2900/7.3100 RMB yuan, higher than Monday's trading RMB yuan 7.2500/7.2800. The territory of the market, at about 0730 GMT, the dollar against the RMB exchange rate premium for long-term 920/1180, higher than Monday's close at 760/1000.