On June 1, the exchange rate between RMB and US dollar hit the new low since 2011.

The transaction value of RMB against dollar in the onshore market is also very close to 6.6. The relatively stable RMB exchange rate now has depreciated by 1.9 percent in just one month.

One obvious and direct influence of RMB depreciation on the people is that they have to spend more when it comes to traveling, studying, or shopping in the United States.

In addition to the pressure on people caused by the depreciation of the RMB, aviation companies also suffer the most since they are holding a lot of dollar debts.

Evaluated by industry insiders, several giant aviation companies in China are all holding over 10-billion-dollar risk exposure. As the RMB depreciates one digit, these companies are losing 100 million yuan each time. Experts suggest that these companies expedite their foreign exchange purchasing process and lock down on the exchange rate.

So is it possible that the RMB exchange rate against dollar will go above 7?

The foreign exchange trading supervisor of the China Merchants Bank Zhang Zhiqing considers that there is still great pressure on the RMB in the short term. But there is great risk involved with betting that the RMB exchange rate would hit 7. As the Federal Reserve would probably raise interest rates twice in this year, it still remains unknown whether or not the RMB exchange rate would go higher than 6.6.

Insiders advise that for personal investment, people should not blindly follow the trend and ignore the risks of buying dollar-denominated financial products.