On May 26th, the RMB exchange rate strengthened. The central parity rate of the RMB against the US dollar was raised by 86 basis points to 7.1833, the highest since April 2nd and the largest increase since January 21st. Moody’s International Credit Rating Agency released a report, deciding to maintain China’s sovereign credit rating of “A1” and the negative outlook unchanged.

While the RMB exchange rate strengthened, the US dollar index fell below the 99 mark during the trading session. Recently, the US dollar has started a new round of decline. Under the dual pressure of an expanding fiscal deficit and uncertain trade policies, the US dollar index dropped by nearly 2% last week, and the United States has once again suffered a “triple blow” to stocks, bonds and foreign exchange.

The interviewees believe that the recent strengthening of the RMB exchange rate is mainly influenced by factors such as the depreciation of the US dollar and the domestic proactive and forceful macro policies. Looking ahead, the RMB exchange rate is more likely to show a two-way fluctuation trend opposite to that of the US dollar, but the amplitude will be relatively small. Chinese assets are expected to become a safe haven, and the dividend sector still has relatively high allocation value.