The RMB staged a strong rebound on October 26. Both the onshore and offshore RMB against the US dollar rebounded significantly, with intraday highs hitting 7.1610 and 7.1823 respectively, rebounding more than 1,000 points from the intraday lows.

On the 26th, after opening at 7.2949, the spot exchange rate of RMB against the US dollar fell below the 7.30 mark for a time. In the afternoon, as the US dollar index further weakened, the spot exchange rate of RMB against the US dollar recovered several points one after another. As of the close on October 26, at The onshore renminbi against the U.S. dollar was at 7.1825, up 1,260 basis points from the previous trading day, hitting a new high since October 12; the offshore renminbi against the U.S. dollar regained the 7.21 mark, up more than 1,000 basis points within the day; up 30 basis points.

On October 26, the U.S. dollar index, which measures the U.S. dollar against six major currencies, fell from 111.1399 to 110.1293, falling below the 110 mark for a while, with an intraday drop of 0.86%, the first time since September 20. Non-U.S. currencies continued to rise. The euro against the dollar stood at 1.00, the first time since September 20 that it rose above parity. The pound against the dollar, the yen against the dollar, and the Australian dollar against the dollar all rose by more than 100 points or nearly 100 points within the day.

On October 24, the exchange rate of the offshore RMB and the onshore RMB against the US dollar both fell below 7.30, both hitting new lows since February 2008. On the morning of October 25th, in order to further improve the macro-prudential management of full-scale cross-border financing, increase the sources of cross-border capital of enterprises and financial institutions, and guide them to optimize their asset-liability structure, the People’s Bank of China and the State Administration of Foreign Exchange decided to integrate the cross-border financing of enterprises and financial institutions. The macro-prudential adjustment parameter for financing was raised from 1 to 1.25.