After the Fed’s decision on interest rates was released, the US dollar index reached a maximum of 111.73, continuing to hit a new high since 2002, and non-US currencies generally fell.
After the Federal Reserve raised interest rates by 75 basis points for the third time in a row as scheduled, the US dollar index hit a 20-year high, non-US currencies generally fell, and the exchange rate of the RMB once morest the US dollar fell sharply in both the onshore and offshore markets.
On September 22, the spot exchange rate of the RMB once morest the US dollar fell below the 7.08 mark at the opening and reported 7.0801, down 266 basis points from the closing price of the previous trading day, and then further fell below the 7.09 mark.
In terms of the central parity rate, data from the China Foreign Exchange Trading Center showed that the central parity rate of the RMB once morest the U.S. dollar was reported at 6.9798 on September 22, a sharp drop of 262 basis points.
After the central parity rate was released, the exchange rate of the offshore RMB once morest the US dollar, which more reflected the expectations of international investors, continued to fall below 7.09, and then fell below the 7.10 mark.
At 2:00 a.m. on September 22, Beijing time, the Federal Reserve announced a decision to discuss interest rates, raising the target range of the federal funds rate by 75 basis points from 2.25%-2.50% to 3.00%-3.25%. This is the third consecutive interest rate hike by the Fed this year. basis point. At the same time, according to the rate hike path shown by the updated dot matrix, there is still 125bp remaining in the year, that is, the high probability is 75bp in November, 50bp in December, and 25bp will be added early next year.
At a subsequent news conference, Fed Chairman Jerome Powell said the median quarterly forecast submitted by Fed officials did imply a further 125 basis points of rate hikes this year. But he also said the Fed has yet to make a decision on how much to raise rates at its next meeting, stressing that a considerable number of Fed officials prefer to raise rates by just one percentage point by the end of the year.
After the Fed’s decision on interest rates was released, the US dollar index reached a maximum of 111.73, a new high since 2002, non-US currencies generally fell, the exchange rate of the euro once morest the US dollar continued to hit a new low since October 2002, and the exchange rate of the pound once morest the US dollar hit a new low in 37 years. The Australian dollar hit its lowest level once morest the US dollar since May 2020.
Author: Chen Yueshi, source:The Paperthe original title: “The Fed’s interest rate hike landed, the onshore and offshore RMB exchange rates fell below 7.09 and 7.1”.
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