China state banks seen buying dollars to slow yuan rally – traders

China’s major state-owned banks were seen buying U.S. dollars in the onshore spot market from noon on Tuesday, traders said, in a move viewed as an official effort to prevent the local currency from rising too fast.

The onshore spot market opened at 6.4601 per dollar and jumped to 6.4292 in the morning session, its strongest since June 15, 2018.

The state bank action quickly stopped the yuan from rising further, three traders said.
Source: Reuters (Reporting by Shanghai Newsroom; Editing by Jacqueline Wong)