Trump's victory "Renminbi depreciates heavily" with the largest drop in 4 years, be wary of China's Central Bank intervention

The US presidential election won by Trump, intensifying the market's expectations for the United States to impose Chinese tariffs, People's Coin responded to the sound yesterday (6), and the offshore People's Coinfall broke the 7.20 mark. Analysts pointed out that the future direction of the dollar depends on the speed of Trump's policy, the current fall is due to the psychology of expectations, and Chinese state-owned banks may intervene to stabilize the exchange rate. (Synopsis: Trump wins "BTC won't go up?") Chief Financial Officer: He will not let the dollar depreciate .. (Background supplement: Trump's mighty BTCSpot ETF daily volume broke a new record of $6 billion, and the market value of the coin soared by 200 billion magnesium) The US presidential election was won by Trump, and the market widely expected that he might impose tariffs on China after his election, so that the people's coin had to depreciate sharply to hedging. People's coin depreciated Therefore, yesterday (6) when the Trump election was good, the people's coin fell sharply against the US dollar Exchange Rate: The "offshore people's coin" reflecting the expectations of international investors broke the 7.20 mark against the US dollar Exchange Rate, the lowest was 7.2097, and the fall fell more than 1000 basis points within the day, with a fall range of more than 1.3%, giving up all the gains since September. Onshore People's Coin also fell 1.1% at one point to 7.1803, closing at 7.1796, the biggest one-day fall since February 2020. Meanwhile, Trump's decisive victory pushed up US Treasury yields and pushed the dollar to a 4-month high, with the dollar index rising more than 1.8% on the day. In contrast, gold prices tumbled $84.81, or 3.09 percent, to $2,658.87 an ounce at Wednesday's close, the biggest one-day fall in five months. USD/People's CoinExchange Rate Chart Analyst: Short-term uncertainty drives dollar strength In response to the outlook for the future of the dollar, Nick Marro, chief economist for Asia at the Economist Intelligence Unit, said that at least in the short term, uncertainty among international investors may push the dollar up. Marro pointed out that inflationary pressures from Trump's proposed trade tariffs (Trump said during the election campaign that he would impose tariffs of up to 60% on Chinese goods) would further complicate the prospect of monetary easing in the United States. "The continued strength of the U.S. dollar and the long-term elevation of the U.S. Intrerest Rate may widen the Intrerest Rate gap between the U.S. and China, especially as China remains accommodative," he said. Marro added that in addition to the possibility of rising US-China trade tensions, geopolitical risks will also increase the depreciation pressure on People's Coin. However, Ding Shuang, chief economist for Greater China at Standard Chartered, said the People's Bank of China may intervene to control the depreciation of people's coins and prevent people from losing confidence in China's economy. Ding Shuang believes that the exchange rate between the US dollar and the people's coin may become one of the bargaining chips in the Sino-US tariff negotiations. "Trump wants the dollar not to be too strong so as not to weaken its export competitiveness; And China doesn't want people's coins to be overly weak. The two sides may find some kind of balance." Trump has long complained that the dollar is overvalued, arguing that it hurts U.S. export competitiveness, widens the trade deficit, and is bad for manufacturing and employment. However, this does not mean that Trump will push for a policy of devaluing the dollar. Scott Bessent, Trump's chief economic adviser and popular choice for finance secretary, said in an interview with the Financial Times that if Trump is elected, it may continue the "strong dollar policy" of the United States. He pointed out: "Trump will not deliberately devalue the dollar, but will support the dollar as a reserve coin." Reserve coins fluctuate with market fluctuations. I believe that as long as there is a good economic policy, the dollar will naturally strengthen." Bessent also expressed his views on Trump's previous plan for a 20 percent tariff on imported goods, arguing that the policy could eventually be compromised in discussions with trading partners. Therefore, People's Coin's fall yesterday was more based on market expectations. Brad Bechtel, global head of foreign exchange at Jefferies Group, said: "After Trump's election, the dollar started strongly, but the future trend will largely depend on the speed of policy implementation. I can see the potential for the dollar to continue to rise over time, but I don't think it's going to reprice immediately." Brad Bechtel added that Trump's ability to move quickly on tariff and regulatory reform also depends on whether Republicans can win the House. "We'll see if this creates a 'red wave' that will determine the speed at which the market goes," he said. People's coin may fall to? Everbright Securities Research Institute pointed out in its research report from the perspective of technical analysis that the depreciation of people's coin against the US dollar exchange rate may have a "top", and the previous market repeated trading test of 7.3 is a possible strong support level. However, the tug-of-war effect of internal and external factors may lead to the phenomenon of "three-valent divergence", so that Exchange Rate is maintained in a weak equilibrium. In addition, there is still uncertainty about the strong upside of the dollar. Liu Yang, general manager of the financial market business department of Zhejiang Zhongtuo Group, said that People's Coin may fall to 7.2 in the short term, while international investment banks generally expect that People's Coin may break 7.3 against the US dollar. Related reports Inventory of Trump's "full support for cryptocurrency" Favourable Information promises: BTC strategic reserves, expulsion of the chairman of the SEC, no CBDC Trump wins the election of Dalido! Dow Jones futures spewed more than 1100 points, Tesla premarket big pump exceeded 12% The full text of Trump's speech announced his election: I love Musk, he is a superstar born, make Americans great again "Trump wins the election "people's coin heavy depreciation" hit the largest fall in 4 years, be wary of China's Central Bank intervention" This article was first published in BlockTempo "Dynamic Trend - The Most Influential Block Chain News Media".