Offshore Yuan Rises Most on Record as China Banks Sell Dollars
- Chinese state banks were seen selling dollars, traders say
- PBOC’s stronger fix eased yuan depreciation pressure
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China’s beleaguered yuan surged by a record, joining a broad rally against the dollar as investors bet that the Federal Reserve will moderate the pace of its rate hikes. Traders also reported seeing Chinese banks selling the greenback to help drive the move.
The offshore yuan jumped 1.8% to 7.1917, while the currency climbed 1.4% in the mainland. The strength of the move caught out proprietary desks with stop-loss levels triggered, according to traders who declined to be identified as they’re not authorized to speak publicly. State-owned banks were also seen selling the dollar, they said.