Apparently the main state banks of China are buying US dollars to limit the appreciation of the yuan, informs Reuters, mentioning two traders familiar with the operations.
They said Chinese banks are buying dollars in the local currency market at night trading sessions.
Furthermore, state banks are said to be “exchanging dollars for yuan on the swap market this week, that is, causing the yuan fall in the futures market, and making yuan loans more expensive. ”
USD / CNY falls 0.30%
In light of the intervention, USD/CNY falls to 6.7064, losing 0.325 on day.
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Credits: Forex Street
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