Recently, the exchange rate of the Renminbi against the US dollar has shown a significant rise trend. This trend has triggered a positive response from domestic banks, which are taking measures to balance the fluctuations in the currency market.

Observations show that domestic banks have been continuously increasing their purchases of USD spot in recent months, which is seen as a strategy to hedge against the rapid rise of the RMB. This move reflects the financial institutions' sensitive response to the current market dynamics.

Market data further corroborates this trend. The 12-month onshore RMB to USD swap points have fallen to the lowest negative value since 2022. This indicator suggests that the cost of forward USD positions is rising, which may impact future currency trading strategies.

It is worth noting that in recent weeks, the swap points in the onshore RMB market have surpassed those in the offshore market. The difference between the two markets has even reached its highest level since 2013. This phenomenon once again highlights the strong demand for dollars in the onshore market, reflecting market participants' expectations and responses to the appreciation of the RMB.

These market trends not only reflect the current economic situation but also indicate possible adjustments to future monetary policy. Financial institutions and investors need to closely monitor these changes to develop appropriate investment and risk management strategies. As the global economic environment continues to evolve, the trend of the Renminbi Exchange Rate will remain a focal point of market attention.