Yuan touches 10-month low before paring losses

The central bank continued its months-long trend to set daily yuan midpoint fixing at firmer-than-expected levels to stem weakness. — Reuters

SHANGHAI: China’s yuan fell to a 10-month low against a buoyant US dollar before paring some losses yesterday, as state banks stepped in to offer support to prevent the local currency from sinking further.

Sources told Reuters that major state-owned banks were seen mopping up yuan liquidity in the offshore foreign exchange market and actively selling US dollars onshore in early trades, in a bid to slow the pace of yuan declines.