Core Viewpoint - The recent appreciation of the Renminbi (RMB) against the US dollar has caused significant regret among dollar holders, as the offshore RMB exchange rate has surged to a new high since November of the previous year, reaching 7.16 [1][3]. Group 1: Factors Driving RMB Appreciation - The RMB's strong performance is attributed to multiple factors, including the nearing end of the Federal Reserve's aggressive interest rate hikes, which has diminished the dollar's attractiveness [5]. - China's economy has shown robust resilience, with favorable foreign trade data and a significant increase in trade surplus, leading to strong demand for currency exchange [5]. - Continuous inflow of foreign capital into the A-share market has further supported the RMB, as foreign investors convert dollars to RMB for investment [5]. Group 2: Market Reactions and Predictions - The People's Bank of China's subtle policy adjustments have effectively guided market sentiment, with the central parity rate of the RMB being raised multiple times, signaling stability [3]. - Market reactions have been swift, with the onshore and offshore RMB rates showing a narrowing price gap, indicating strong buying interest [3]. - Most institutions predict that the RMB will maintain its strength in the second half of the year, with a trading range expected between 7.1 and 7.2, although unforeseen events could lead to volatility [9]. Group 3: Impacts of RMB Appreciation - The appreciation of the RMB benefits outbound travelers and online shoppers, as they can save significantly on expenses when converting currency [8]. - Conversely, export-oriented companies face pressure as clients demand lower prices, leading to reduced profit margins [8].