After the onshore market, the yuan also rose above the 7.20 mark against the dollar in the offshore market.

On November 20, the offshore yuan exchange rate, which more reflects the expectations of international investors, rose above the 7.20 mark against the US dollar in intraday trading to as high as 7.1999, the first time it has risen above this mark since August 8.

On November 20, the central price of the RMB against the US dollar was 7.1612, the highest since August 11, 2023, and the increase of 116 basis points was the largest since September 12, 2023.

In the previous trading day, the spot exchange rate of the renminbi against the US dollar was the first to rise above the 7.20 mark.

In the evening trading hours of November 17, the spot exchange rate of RMB against the US dollar rose to 7.1911, up more than 600 basis points, a new high since the beginning of August.

Sinolink Securities pointed out that the rapid weakening of the US dollar is the direct driver of the appreciation of the RMB exchange rate, and the rapid decline in US Treasury interest rates is the main reason for the weakening of the US dollar. Under the combined effect of three factors, namely, the easing of the supply-side impact margin of US bonds, the weakening of economic data, and the easing of speculative disturbance, the US bond interest rate fell rapidly, and the US dollar index also weakened. The positive signals released by the derivatives market, the strengthening of the forward exchange rate and the decline of the risk reversal factor have also released the signal of continued appreciation of the RMB.