China state-owned banks sold dollars as yuan fell to near seven-month low, sources say

June 11, 2024 4:55 am

SHANGHAI/BEIJING (Reuters) – China’s major state-owned banks were seen selling dollars for yuan in the onshore spot foreign exchange market on Tuesday to prevent the local currency from falling too rapidly, four people with knowledge of the matter said.

China’s state banks usually act on behalf of the central bank in the country’s foreign exchange market, but they could also trade on their own behalf.

© Reuters. FILE PHOTO: Woman holds Chinese Yuan banknotes in this illustration taken May 30, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The state banks’ actions came as the fell to a near seven-month low against a strengthening dollar in early deals on Tuesday.

The yuan last traded at 7.2529 per dollar as of 0310 GMT.

Feed from

MoneyMaker FX EA Trading Robot