The increase in foreign exchange reserve might be indicating that the depreciation of RMB have slowed down considerably, the exchange rate of RMB against USD in October have rebounded sharply compared to August and September.

Anbound's scholars, however, are of the view that this does not necessarily mean the reversal of the RMB depreciation.

In the future, the factors that causing the depreciation of RMB might gain momentum gradually, including the rate hike in the United States and the Chinese economy.

When judging the exchange rate trend, one should look at the market expectation.

In addition to the foreign exchange factor, the capital shortage in the domestic capital market in China might also be the main reason why the investors are staying away from the yuan asset.

The supporting elements for steady yuan exchange rate is not strong, yuan is still face the possibility of continuing depreciation.