It is said that China's major state-owned banks have been seen selling dollars in the onshore market to stabilise the yuan exchange rate. The selling is said to be meant to prevent the spot price from weakening past 7.25 yuan per dollar, which seems to be where the line is being drawn at the moment.
This comes as the optimism from the China headlines yesterday here has been quickly faded, with the dollar coming back into favour again today as broader market sentiment stays under pressure.
