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State Banks Seen Selling USD/CNH Ahead of 7.25

CHINA
  • Reuters reports that China's major state-owned banks were seen selling dollars in the onshore market in order to stabilise the CNY exchange rate. The dollar selling is reportedly meant to prevent the USD/CNY rate from weakening through the 7.25 level.
  • Follows broader USD weakness posted across the European morning, with EUR/USD and GBP/USD recovering off overnight lows over the course of the past hour or so.

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