[RMB exchange rate has been under pressure recently, the industry believes that there is no room for sharp depreciation] FYF, May 25, recently, the RMB exchange rate against the US dollar has continued to fluctuate and fall. The central parity rate of the yuan against the dollar was 7.0560 on May 24, the lowest since December 2, 2022, according to the China Foreign Exchange Trading Center. Since May, the central parity rate of the RMB against the US dollar has depreciated by 1506 basis points. Why is the exchange rate of RMB against the US dollar under pressure? Ming Ming, chief economist of Citic Securities, said that the recent US banking turmoil and the growing debt ceiling crisis have led to a rise in risk aversion in the market, superimposed by an unexpected rise in long-term inflation expectations in the United States, which has led to a correction in market expectations of Fed interest rate cuts. as a result, the recent strengthening of the US dollar index has put some pressure on the RMB exchange rate. "the strengthening of the US dollar index leads to the indirect weakening of the RMB exchange rate," said Hou Xianping, a senior investment adviser at Jufeng. In fact, the basis for the continued weakness of the RMB exchange rate does not exist. In addition, Federal Reserve Chairman Powell also hinted that the Fed may suspend raising interest rates in June, and once it stops raising interest rates, the dollar index will weaken, indirectly supporting the rebound of the RMB exchange rate. (Securities Daily)