Reuters reports on the matter


The report says that big state banks in China have been buying dollars in the onshore spot market during late night trading sessions to effectively prevent the yuan from strengthening too fast, citing two traders familiar with the operations.

Adding that they also have been swapping dollars for yuan in the swap market this week i.e. causing the yuan to fall in the forward market, and making yuan borrowings more expensive; suggesting that authorities are trying to limit the yuan appreciation.

This just bolsters the narrative after the counter-cyclical suspension this week here.