SHANGHAI (Reuters) - Chinese state-owned banks were selling dollars on behalf of the central bank to keep the yuan around 6.43 against the dollar on Wednesday, foreign exchange traders in Shanghai said.
The intervention came despite a pledge on Tuesday by the People’s Bank of China to let the market have a bigger say in deciding the yuan’s exchange rate. It made the pledge after devaluing the currency to support the economy.
When contacted by Reuters about the allegation that the trades were being executed on behalf of the PBOC, a central bank official said the bank had nothing to add to public statements it has already made.
Reporting by Lu Jianxin and Pete Sweeney; Editing by Mark Bendeich