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

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Major China state-owned banks seen supporting yuan after fresh fall: traders
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Major Chinese state-owned banks were seen supporting the yuan in the forwards ma...

A China yuan note is seen in this illustration photo May 31, 2017. REUTERS/Thomas White/Illustration

SHANGHAI - 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.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.

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