Chinese banks were seen selling dollars after the yuan weakened past a key level, stoking speculation that authorities were seeking to slow the losses.
The yuan was 0.5 percent lower at 6.6981 per dollar at 11:31 a.m. in Shanghai after earlier falling to 6.7204. Some Chinese major banks sold the dollar in the swaps market, according to four traders. A Bloomberg survey last week found observers expected the People’s Bank of China would act to slow the descent at 6.7.
