Since May, the RMB exchange rate has performed consistently well. On May 26th, the offshore RMB exchange rate against the US dollar continued to rise, breaking through the 7.17 mark during the trading session and reaching a high of 7.1614 yuan, hitting a new high since November 8, 2024.

This significant rally has drawn widespread attention from the market. Industry insiders believe that this round of rally is driven by both domestic and international factors. At the international level, the downgrade of the US sovereign credit rating, the cooling of US bond auctions, and the controversy over tariff policies have raised concerns about its economic outlook. The weakening of the US dollar index provides appreciation space for the RMB.

Domestically, the GDP growth rate in the first quarter was 5.4% year-on-year, exceeding expectations. The continuous implementation of policies to stabilize growth, coupled with the upward revision of China’s economic growth forecast by international institutions, has strengthened investors’ confidence in the RMB.