| China's spot yuan finished firmer on Monday as state-owned banks sold dollars, traders said, but the central bank doused market speculation it had tried to stabilise the Chinese currency. Two traders had told Reuters that state banks sold dollars after the Chinese central bank sharply weakened its official fixing. The People's Bank of China (PBOC) occasionally acts through state banks.
The PBOC set the midpoint rate at 6.6908 per dollar prior to market open, the weakest since Aug. 31, and softer than the previous fix 6.6684. As the official guidance rate was set near the psychologically-important threshold of 6.7 per dollar on Monday, traders said state-owned banks offered dollars which pulled the yuan back to around 6.68...............................................Full Article: Source
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