The Chinese yuan eased to a three-week low against a firmer dollar on Thursday, while its value against the currencies of major trading partners touched a fresh 5-1/2-year high.
China's central bank said on Monday that it will raise the FX reserve requirement ratio for financial institutions to 7% from 5%, effective on June 15.
By Reuters Staff
(Adds comments, details and background)
SHANGHAI/BEIJING, May 25 (Reuters) - China’s major state-owned banks were seen buying U.S. dollars at around 6.4 yuan per dollar level on Tuesday afternoon, four sources with knowledge of the matter said, in a move viewed as an effort to curb fast yuan appreciation to breach the key level.
The onshore yuan opened at 6.4110 per dollar and jumped to a high of 6.4016, the strongest level since June 2018 and a tad below the psychologically important 6.4 per dollar level.
One of the sources said the state-run bank quickly stepped in to soothe the fast yuan rally in the onshore market after its offshore counterpart rose past the key level.