Upward movement of RMB likely to continue

The recent strengthening of the Chinese renminbi against the US dollar reflects strong market confidence in the potential of China's economic recovery and the improving outlook of the external environment. This upward momentum of the Chinese currency is likely to continue for the next few months, experts said on Tuesday.

After rising 800 basis points to touch 7.16 against the US dollar on Monday, its best show in four months, the onshore RMB continued to gather strength to approach 7.13 during the early trading hours on Tuesday.

The offshore RMB — the RMB traded outside the Chinese mainland market — also jumped more than 500 basis points on Monday to breach the 7.17 level against the greenback. It went on to hit 7.14 during the early trading session on Tuesday.