China's state banks seen selling US Dollars offshore to slow Yuan drop – Reuters

Dhwani Mehta FXStreet

Citing four sources with knowledge of the matter, Reuters reported on Tuesday, China's major state-owned banks reportedly sold US Dollars in the offshore spot foreign exchange market, as authorities sought to steam the recent slide in the Chinese Yuan.

The sources said, "The 7.25 (yuan per dollar) level remains a key threshold," adding that “a breach of the level could quickly send the Yuan to lows last seen in 2022.”

Earlier this Tuesday, the People's Bank of China (PBOC) set the daily Yuan fixing rate stronger than market expectations for the second day in a row.

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