SHANGHAI/BEIJING (Reuters) – China’s major state-owned banks sold dollars for yuan on the domestic spot foreign exchange market on Tuesday to prevent the local currency from falling too quickly, four people familiar with the situation said.
China’s state-owned banks typically act on behalf of the central bank in the country’s foreign exchange market, but they can also trade on their own behalf.
The moves by state-owned banks came as shares fell to a near seven-month low as the dollar strengthened in early trading on Tuesday.
The yuan was last trading at 7.2529 per dollar at 0310 GMT.