Extended data:
The impact of dollar appreciation on A shares;
The main indicator to judge whether the US dollar is rising in China is the US dollar index. The rise of the dollar index is an index that comprehensively reflects the exchange rate of the dollar in the international foreign exchange market and is used to measure the change process of the exchange rate of the dollar against a basket of currencies. If the dollar rises, it may have the following effects on A shares:
First, the rise of the dollar means the appreciation of the dollar. After the appreciation of the dollar, it may lead to the withdrawal of funds from the stock market in the A-share market, and then invest in the US capital market, which will have a certain negative impact on A-shares.
Second, most international commodities are denominated in dollars. In the case of constant supply and demand, the rise of the dollar may lead to the decline of commodity prices, which is not conducive to the rise of such stock prices. Bulk commodities refer to non-retail and heavily traded commodities, mainly including agricultural and sideline products, metal products, energy products and chemicals.
Third, the rise of the dollar means the depreciation of the renminbi, which is beneficial to exports and unfavorable to imports. For some companies with active international trade, the import cost will increase and the stock price may be affected.
The impact of the Fed's interest rate decision on the US dollar;
There are two kinds of interest rate decisions of the Federal Reserve: raising interest rates (raising interest rates) and lowering interest rates (lowering interest rates), which have different effects on the US dollar.
If the Federal Reserve announces a rate hike, that is, when it raises interest rates, for example, the Federal Reserve announces a rate hike of 25 basis points, international investors will choose to abandon their assets and invest in the dollar market for the sake of income, resulting in a shortage of dollars, a higher exchange rate of dollars and currency appreciation. At the same time, to a certain extent, this will lead to a decrease in US exports, an increase in imports and a trade deficit.
If the Fed announces a rate cut, that is, when it cuts interest rates, for example, the Fed announces a rate cut of 25 basis points, and the interest rate drops from 2.25% to 2.00%, international investors will choose to abandon the US dollar and invest in other foreign exchange markets for gains, resulting in a lower exchange rate of the US dollar and a devaluation of the currency. At the same time, to a certain extent, this will lead to an increase in US exports, a decrease in imports and a trade surplus.