The dollar cuts interest rates, does gold rise or fall?
Generally speaking, when the dollar cuts interest rates, gold will rise. Judging from the history of the Fed's interest rate cuts in the past, the price of gold has risen after the interest rate cuts. Because the US dollar interest rate cut is actually the Fed's lowering of the federal benchmark interest rate, which will affect the financing cost of commercial banks. As the savings income of depositors declines, people are more willing to put money into the market, thus stimulating economic growth. Cutting interest rates will also reduce the value of the dollar. At this time, investors are more inclined to invest in gold with hedging and hedging effects. As the number of people buying gold increases, the price of gold will also rise. But in practice, the fluctuation of gold price is influenced by many factors. The interest rate cut by the US dollar has a certain impact on gold, but it may not be the main factor.
Does the US Federal Reserve's interest rate cut affect the RMB?
The Fed's interest rate cut, that is, lowering the federal funds rate, will lead to the inflow of international funds from the US dollar market to higher-yielding markets for the sake of income, which will lead to the depreciation of the US dollar and the appreciation of the RMB in disguise.
For example, before the interest rate cut, the exchange ratio between the US dollar and RMB was1:7; After the interest rate cut, the conversion ratio of USD to RMB was 1:6.9, and the RMB converted from 1 USD decreased by 0. 1 Yuan, indicating that USD depreciated and RMB appreciated.