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China state banks sell dollars, push the yuan to two-month high - traders
May 25, 2017 / 3:59 AM / 7 months ago

China state banks sell dollars, push the yuan to two-month high - traders

SHANGHAI, May 25 (Reuters) - 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 Kim Coghill)

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