Views Article – Sharenet Wealth

Asia, Forex

Major China state-owned banks seen supporting yuan after fresh fall – traders

SHANGHAI, Aug 22 (Reuters) – Major Chinese state-owned banks were seen supporting the yuan in the forwards markets on Thursday after it fell to fresh 11-year lows, two traders with knowledge of the matter said.

The banks were receiving dollar liquidity in the forwards market before selling the greenback in the onshore spot market, traders said.

One of them said the state banks were seen selling dollars at around 7.07 yuan to the dollar in the spot market to prevent sharper losses in the local unit.

The onshore yuan traded at 7.0732 per dollar as of 0401 GMT, down from the previous late night close of 7.0633. It had earlier slid to 7.0752, the weakest since March 2008. (Reporting by Winni Zhou, Jindong Zhang and John Ruwitch; Editing by Kim Coghill)

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