What is the impact of exchange rate changes on stock prices?

The impact is not big, the exchange rate is RMB foreign currency, the RMB currency rises by one dollar, the money of our domestic enterprises is worth more than a dollar, then our domestic people take the RMB out to exchange foreign currency for one more piece, but the same we also need to do business with foreign countries, then the money given to us by foreign countries will be one less dollar, we will earn one less dollar, so the exchange rate has an impact on the export and import of listed enterprises, because how much RMB can be worth the money they earn is related to the exchange rate, The amount of money they can save by paying foreigners for materials is also linked to the exchange rate.

The exchange rate is an important reference index for investors to participate in ** investment, and the exchange rate has a significant impact on **, especially the risk-free rate of return based on the benchmark interest rate, which most directly affects the level of risk compensation. The relationship between the exchange rate and ** is more complex, and it is mainly divided into micro level and macro level to analyze.

At the micro level, the relationship between the exchange rate and ** is inverse. Some analysts believe that exchange rate fluctuations will affect the real value of multinational enterprises, when the exchange rate rises, the company's profits decrease, and the company's stock price**; When the exchange rate falls, the company's profit increases, and the company's stock price**. From the point of view, when the currency appreciates, the industrial class performs better; And when the currency depreciates, the resource class is stronger.

At the macro level, the relationship between the exchange rate and ** is inverse. Some scholars use generalized models to describe it. In its model, macro variables such as debt, current account surplus, market capitalization and exchange rate are included, so as to comprehensively summarize the relationship between exchange rate and exchange, and conclude that there is an important positive correlation between them.

1. Laughing at the depreciation of the RMB.

It will lead to the outflow of investment funds from the domestic market to foreign markets, which will reduce the market funds.

The reduction in trading volume may make the market trend adjust, and at the same time, it will lead to domestic investors being bearish on the market's sentiment, and trading is inactive, **generally**.

2. In the case of RMB depreciation, the import balance curved industry will increase the cost of its imports and indirectly reduce the profits of enterprises, resulting in this kind of ****, for example, some transportation and transportation, steel, and paper industries.

3. In the case of RMB depreciation, the amount of some foreign debts in local currency will rise, which is a negative for debtors.

Therefore, in the case of the depreciation of the RMB, it is bearish for industries with high external debt, such as the aviation industry.

4. The depreciation of RMB refers to the decline of the unit currency, which means the purchasing power of RMB.

The decline is conducive to the export of domestic products, therefore, to a certain extent, it will promote export-related ****, such as textiles and garments, automobiles, electromechanical, furniture and household appliances, foreign trade, ports, and shipping.

Many people use the renminbi basically every day, and when it comes to the depreciation of the renminbi, it may be like ruining it, and many people will feel nervous. The depreciation of the currency means that the value of the currency decreases, that is, the purchasing power decreases. So what is the impact of the depreciation of the RMB on **?

1. Domestic market: The depreciation of RMB is a negative impact on the domestic market, and the depreciation of RMB in the domestic market is essentially a decline in the actual purchasing power of RMB. If it depreciates, it means that the market has a negative attitude towards the future of China's economy.

The market's negative attitude towards China's economic development has led to capital flight, which has led to the depreciation of the renminbi.

After the depreciation of the renminbi, the amount of external debt in local currency will rise, which is negative for industries with relatively high external debt. The reduction of market volume may make the market trend adjust, and at the same time, it will lead to domestic investors being bearish on the market's sentiment and inactive trading, **generally**.

2. Foreign markets: After the depreciation of the RMB, the depreciation of the RMB will lead to the outflow of investment funds from the domestic market to foreign markets, which is good for foreign countries. In this case, there will be a decrease in market funds.

The depreciation of RMB mainly refers to the fluctuation of the exchange rate, and the impact on ** is mainly as follows:

1. The stock price will generally appear, and it is easy to sell;

2. If the RMB continues to depreciate, it is easy to cause shareholders to have no intention of investing, and they will be deserted;

3. The impact of RMB depreciation on domestic assets is early, which is easy to lead to the weakening of financial, real estate and other related weighted sectors, which will seriously affect the overall **.

However, in fact, the depreciation of the RMB has not had a great impact on the first generation, first, the trend and magnitude of the depreciation of the RMB are not large; First, the current position of the first ant is very low.

The depreciation of the RMB exchange rate does have an impact on the ****, and the fundamental logic is caused by the flow of external capital and concessions. For example, before 6 yuan of people and mu of people for 1 dollar, now it takes 7 yuan to exchange for 1, which is equivalent to holding the same 100 yuan, before it can be exchanged for dollars, and now only the empty bureau can be exchanged for dollars, for foreign capital, in the process of depreciation, it will definitely be exchanged in advance, so that the funds will flow out of the country from RMB to US dollars, and the amount of funds is less, and it is easy. Second, the depreciation of the exchange rate generally reflects the expectations of foreign investors on the domestic economy, and when the domestic economy is not expected to perform strongly, foreign capital will also turn in other directions.

The depreciation of the RMB has a certain negative impact on the overall situation of the company, which will lead to further increase in market volatility, but the impact on various sectors cannot be ignored.

Recently, the RMB has entered the depreciation channel with the US dollar interest rate hike, and the central bank has taken measures to reduce the reserve requirement ratio in response, so the impact of the RMB exchange rate depreciation on the first needs to be observed.

How volatile is the RMB exchange rate? Don't be afraid, the central bank will deal with it calmly!

Exchange rate fluctuations must be caused by the great influence of society, and there are some ** and the like, which have a very large impact on interest rates and exchange rates.

Changes in exchange rates are influenced by the following factors:

1. Market trading hours. If there is an overlapping time for market transactions, then the spread of the exchange rate will narrow.

2. The currency of the transaction. The US dollar, the British pound, the euro, and the Japanese yen are the most traded currencies in the world. Trades between them will result in smaller ** and ask spreads. Others, such as Australian dollars, Thai baht, etc., will have a large spread.

3. Trading volume. The higher the volume, the wider the spread. Because the greater the risk taken by the dealer.

4. The monetary and fiscal policies of various countries will also affect the changes in exchange rates.

Exchange rate fluctuations are mainly influenced by the economy.

1. The foreign exchange rate of the currency is the currency of another country to express the national currency, and its level is ultimately determined by the foreign exchange market.

The main factors that determine the exchange rate are as follows:

1.Balance of payments and foreign exchange reserves.

If the total amount of monetary income is greater than the total amount of expenditure, there will be a balance of payments surplus, which will increase the external exchange rate of the country's currency, and vice versa, the exchange rate of the country's currency**.

2.Interest rate. A higher interest rate in a country will lead to an increase in the value of the country's currency, and conversely, the depreciation of the country's currency.

3.Inflation.

In general, inflation causes the country's currency to exchange rate**, and the easing of inflation can increase the exchange rate.

4.Political situation.

Changes in the political situation in a country and internationally will have an impact on the foreign exchange market.

5.The rate of economic growth of a country.

The impact of economic growth on exchange rates is complex. In the long run, economic growth leads to an increase in the value of the local currency.

6.People's psychological expectations.

Exchange psychology believes that the foreign exchange rate is a concentrated embodiment of the subjective psychological evaluation of currency by both foreign exchange supply and demand. If the evaluation is high and the confidence is strong, the currency appreciates.

Extended information] 1. What is the basis for the exchange rate of currencies.

1.Currency exchange rates are also known as "foreign exchange markets or exchange rates". The ratio of one country's currency to another's currency is the ratio of one currency to another.

Because the names and values of currencies in different countries are different, the currency of one country has to set an exchange rate with the currencies of other countries, that is, the exchange rate.

2.The exchange rate refers to the exchange rate between two different currencies, and if you think of foreign exchange as a commodity, the exchange rate is the first currency that one currency buys another currency in the foreign exchange market. For example, one dollar = 110 yen means that one dollar can be exchanged for 110 yen.

2. The exchange rate is expressed through direct ** and indirect pricing.

1.Direct**.

Direct** is a pricing method that converts a certain amount of foreign currency into a certain amount of domestic currency based on a certain unit of foreign currency. Currently, most countries use this pricing method. Japanese Yen, Swiss Franc, Canadian Dollar, Hong Kong Dollar and Singapore Dollar are direct**.

2.Indirect pricing.

Indirect pricing is a pricing method that converts a certain unit of currency into a certain amount of foreign currency. The Euro, British Pound, and Australian Dollar are priced indirectly.

Now, the world freight agency is developing rapidly, and it can be said that interest rates are increasingly damaging to a country's economic development. Generally speaking, if a country's lending currency promotes the basic policy of increasing its value, then the stock price will have a trend of rising trend, and if its money and silver depreciate, the stock price will start to fall.

In my opinion, it doesn't matter which country's economic development is damaged by interest rates at different levels, and the country's expansion of openness immediately determines the level of damage to a country's economic development caused by exchange rate changes, so it is said that the higher the value of a country's expansion and opening up, the greater the damage to interest rates.

In fact, the damage caused by exchange rate changes to stock prices is most immediately the ** of these trading companies. In general, profits first damage the company's past business and earnings, and then reflect it at the stock price level, as detailed below.

1) The company's products are exported.

If most of the company's products are used in overseas markets, as long as the exchange rate improves, the competitiveness of products in overseas markets will decline, and the company's earnings will show a downward trend, and the stock price will also fall.

2) The company's material imports.

If some of the company's materials rely on imports, the products are mainly abroad, so that the exchange rate has improved, and then the company's cost of materials will be reduced, and its surplus will be improved.

The boundary of deposit reserve is that banks often keep a certain amount of deposits in ** bank, and this part of the amount is specifically used to meet the needs of depositors to withdraw deposits and clear funds. Depositors can withdraw their deposits at any time, but it is rare for all depositors to withdraw all their deposits at the same time. As a result, banks are able to use most of their deposits to buy short-term bonds or borrow money, leaving only a small amount of deposits as reserves for withdrawals.

In deposits, the percentage of the reserve requirement should be regulated by ** (detailed by ** bank) for the corresponding rules, which is called the statutory reserve ratio. If the first department chooses to tighten the fiscal policy, it will make the central bank's statutory reserve ratio gradually improve, if the first department indirectly controls the amount of money and silver, it can operate the situation of excessive progress of bank credit in the currency, and at the same time, it will be very difficult for customers of financial institutions to obtain bank credit, and at the same time, the funds invested in the capital will also decline.

1) If a considerable part of the company's products are sold in overseas markets, when the exchange rate increases, the competitiveness of the products in the overseas markets will be weakened, and the company's profitability will decline and ******.

2) If some of the company's raw materials rely on imports, and the products are mainly sold abroad, then the exchange rate increases, so that the company's imported raw material costs are reduced, and the profitability increases, so that the company's stock price tends to be the best.

3) If the exchange rate of a certain country is going to be **, then the monetary funds will be transferred upward, and some of the funds will go in, and ** may also be **.

Therefore, investors can make correct investment choices based on the above-mentioned general impact of exchange rate changes on stock prices, as well as changes in other factors.

The change in the exchange rate will lead to the biggest impact of this **, which is the fluctuation of the difference between its floating rate and the floating rate, which will lead to stable fluctuations in the market.