hkd to rmb future trend

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  1. #1

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    hkd to rmb future trend

    noticed that the 1 hkd gets me under .90 rmb now. anyone want to guess what it will be in the next year? will it continue to drop? down to .8 rmb possibly?


  2. #2

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    The futures market on this has been trending up. It hit a low of around 6.3 to the USD, now back up around 6.6. The current rate dipped under 7, but has returned to above/about 7 in the past couple of weeks.
    Specualtion is the rate of appreciation will slow down and perhaps reverse for the remainder of the year. Your 9-11% strengthening of the RMB scenario is no longer considered likely. Both the bank of China and one of the Ministries of the PRC came out with similar sounding statements in this regard last week.


  3. #3

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    Love the sentiment Sleuth but since when did anyone take notice of BoC or CNG? They cannot control that which " lives on the other side of the Mountain " BUT is good to see the RMB climbing back up the cliff it fell of at the beginning of the year.

    It is not possible for the RMB not to strengthen against the USD this year and I believe 9-11% would be considered brilliant. We had factored 15 - 20% so any less is gravy !! Next year MIGHT see a slowing should someone with an IQ of more than 4 be allowed to oversee the US economy. However -- that supertanker is going to take some turning and if you saw Bloombergs interview with McCains Economic Adviser ( the bitch that was HP ) they are still talking about tax cuts !!!!!

    The biggest China factor is inflation and this time bomb is about to go off as the agriculture that WAS due to market about now -- is dead fruit and veg due to the Middle China Snow Disaster. Imports are well up and more will have to come to cover the shortfall. More expensive food = high inflation - again. Normally that would mean a drop in the currency as the markets cover it BUT ----- this doesn't happen with China.

    So yes up - but only because there is no one out there to fight the little critter - and I think the antics at the beginning of this year have finally sunk in. I hope so, as all my suppliers are frantic and won't confirm long term orders - which is unheard of.


  4. #4

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    Quote Originally Posted by Boris:
    Love the sentiment Sleuth but since when did anyone take notice of BoC or CNG? They cannot control that which " lives on the other side of the Mountain " BUT is good to see the RMB climbing back up the cliff it fell of at the beginning of the year.

    It is not possible for the RMB not to strengthen against the USD this year and I believe 9-11% would be considered brilliant. We had factored 15 - 20% so any less is gravy !! Next year MIGHT see a slowing should someone with an IQ of more than 4 be allowed to oversee the US economy. However -- that supertanker is going to take some turning and if you saw Bloombergs interview with McCains Economic Adviser ( the bitch that was HP ) they are still talking about tax cuts !!!!!

    The biggest China factor is inflation and this time bomb is about to go off as the agriculture that WAS due to market about now -- is dead fruit and veg due to the Middle China Snow Disaster. Imports are well up and more will have to come to cover the shortfall. More expensive food = high inflation - again. Normally that would mean a drop in the currency as the markets cover it BUT ----- this doesn't happen with China.

    So yes up - but only because there is no one out there to fight the little critter - and I think the antics at the beginning of this year have finally sunk in. I hope so, as all my suppliers are frantic and won't confirm long term orders - which is unheard of.
    9-11% rise over the next 12 months is where the futures markets were up until about two or three weeks ago. And they had been there for awhile.
    Now they are at about 6% over the next 12 months. Looks like you could be due some gravy. I think they are reacting to the BoC and various government leaks that enough is enough, for now.

  5. #5

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    noticed that the canadian dollar is taking a beating. anyone know if it will continue to fall or is it going to be stable from here