Vincent Fernando, CFA
June 22, 2010
Maybe this is why the yuan has peculiarly weakened against the U.S. dollar — Traders are reporting that Chinese state-owned banks are ‘aggressively’ buying U.S. dollars.
Several traders said Chinese state-owned banks were buying dollars at various levels, suggesting they were not trying to defend the yuan at a certain level.
Regardless, buying is a form of price support, even if at different levels, and could explain the odd movement of the yuan.
This article was posted: Tuesday, June 22, 2010 at 4:10 am