SHANGHAI May 25 Chinese state-owned banks sold
dollars in the onshore foreign exchange market on Thursday, five
traders said, pushing the yuan to its strongest level
in nearly two months.
"Major state-owned banks were selling dollars in the
market," said a trader at a Chinese bank in Shanghai.
A second trader at a major Chinese bank also said he saw
sales by state-owned banks.
The yuan suddenly strengthened nearly 200 pips to a high of
6.8690 per dollar at 0252 GMT, the strongest intraday level
since March 27.
It traded at 6.8760 per dollar as of 0346 GMT.
State-owned banks have sold dollars in the forex market
regularly since late last year in what some traders believe is
part of official efforts to prop up the Chinese currency.
(Reporting by Winni Zhou, Sun Qizi and John Ruwitch; Editing by