Without warning, on the afternoon of October 20, the exchange rate of RMB (7.2418, 0.0289, 0.40%) against the US dollar (CNH) in the offshore offshore market suddenly jumped by more than 200 basis points.

Affected by this, the exchange rate of RMB against the U.S. dollar in the offshore market bottomed out from a low of 7.2790 during the year. As of 19:00 on October 20, the exchange rate of the RMB against 

the U.S. dollar in the offshore offshore market hovered around 7.2378.

"Market participants generally believe that the sudden jump in the offshore RMB exchange rate on the 20th may be closely related to the straight rebound of the A-share index in the afternoon. The rebound of 

A-shares has boosted the market's buying sentiment, and the offshore 

RMB exchange rate has benefited from it." A domestic Private equity economists pointed out.

A foreign exchange trader from a bank in Hong Kong, China believes that behind the jump in the offshore RMB exchange rate on the 20th, there may be some relationship with the market's readjustment of

 the negative correlation between the RMB exchange rate and the US 

dollar index (113.0112, 0.1709, 0.15%). Recently, the U.S. dollar index has fallen from a high of 114.78 this year to 112.45, but the offshore RMB exchange rate has hit a low of 7.2790 this year. Many investment

 institutions have begun to re-adjust the valuation of the offshore RMB 

exchange rate. The volatility of the exchange rate and the US dollar index is kept at a relatively reasonable level of negative correlation to avoid the abnormal decline of the RMB from the US dollar index.

In the eyes of the above traders, the sudden jump in the offshore RMB exchange rate on the 20th has also effectively repaired the exchange rate difference between domestic and foreign RMB. Specifically, 

although the U.S. dollar index has hit new highs and the RMB exchange rate 

has fallen passively since September, the difference between the domestic and foreign RMB exchange rates has always remained within 200 basis points, indicating that the market��s expectations for 

the fluctuation of the RMB exchange rate are relatively stable. However, this week, 

affected by the continuous decline of the offshore RMB exchange rate, the difference between the domestic and foreign RMB exchange rates once widened to about 300 basis points.