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Thread: How far will RMB go?

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[quote=LEOPOLD219,268280]On Wednesday, US Fed cut the interest rates again, decreasing by 50 points. Stimulated by US Fed's move, the exchange rate between RMB and dollar is 7.1853 : 1.

After the Fed announces to decrease the interest rates, the S&P Index once increased by 1.7 percent but went down quickly. To cut interest rates about 125 points just in eight days shows that US' determination to avoid recession. However, dollar is depreciating greatly. On contrary, other currencies including RMB and Euro has been appreciating quickly. After US Fed declares to cut the interest rates last week, some economists warn that China will burden much pressure from it. More money will flow to China and this makes inflation rates increase. IMF also warned US that continous interest rates cuts can not drag US out of recession.

How do you view this issue? With the dollar depreciating, Chinese RMB is appreciating very quickly. As some economists say, quick appreciation is not goo for Chinese economy. Do you think so? How far will RMB go?[/quote]

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