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Four sources said China's major state-owned banks were buying dollars around 6.4 yuan per dollar to slow the yuan's rapid rise. The onshore yuan had hit its strongest level since June 2018 earlier that day.
Broad dollar weakness after soft US data and steady Federal Reserve signals had supported the currency.
State bank dollar buying is a direct intervention that may slow yuan appreciation and limit the boost to Chinese dollar-priced commodity imports. It signals official resistance to a stronger yuan.
reuters.comMay 25, 2021After 42 past neutral policy events, USDCNY moved a median -0.0% over 5 sessions (50% higher; middle half -0.3% to +0.4%), and -0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
