Chinese banks sell US dollars to support yuan

- REUTERS/Rick Wilking/File Photo/File Photo

SHANGHAI: Major Chinese state-owned banks are selling US dollars in both onshore and offshore markets to prop up the weakening yuan.

Two sources with direct knowledge of the matter told Reuters confirmed the move that comes as the Chinese currency is facing mounting downside pressure, with the onshore yuan hitting the weakest level since December 2007 and the value of yuan against currencies of its major trading partners at a five-month low.