RMB Exchange Rate – How Does US Dollar Perform in China?

RMB Exchange Rate

The RMB exchange rate shows how well the US dollar performs in China, and this subject is one that investors are very interested in. Forex currency trading can be significantly affected by changes in the exchange rate between currencies, and China has recently opened up trading in the yuan to the USA in limited amounts. The government of China still imposes tight control on the value of the yuan currency, and prevents the RMB exchange rate from falling substantially. China has the currency pegged to the US dollar, to ensure that prices for products made in this country are cheaper.

Many experts have accused China of manipulation concerning yuan currency and exchange rates, so that the US dollar is at a disadvantage. The economic downturn has caused some investors to turn away from the US dollar, even though this currency is still considered one of the most popular. The current RMB exchange rate for the US dollar is high, and this currency is still under government control in numerous ways. Experts in Washington have speculated and made accusations about currency manipulation against China, and the practices used to keep the RMB and yuan strong lower the performance of the US dollar in this country. Forex trading strategies have recently started addressing the yuan and RMB currency, because China has started to loosen controls and limits a little on these transactions for trading purposes.

When compared to fluctuations in the rupee exchange rate, and in numerous other currencies as well, the RMB has stayed strong and kept a steady pace with the US dollar. This is due in part to the way that the RMB exchange rate is paired to the US dollar, in what some say is an attempt to prevent the price of Chinese goods to rise around the globe. Some financial experts believe that the performance of the US dollar against the yuan will not improve until China is forced to allow a free valuation of the currency by the global community, like that seen with yen currency.