SHANGHAI: China’s yuan hit its highest level against the dollar since mid- January on Wednesday, breaching a psychologically important barrier, buoyed by a firmer central bank midpoint and massive dollar sales by big state-owned banks, traders said.
Sentiment towards the Chinese currency has been greatly strengthened by suspected central bank intervention in the past two weeks, which markets viewed as the bank persistently signalling its preference for yuan stability.
“Now we feel more confident to sell dollars as we know the authorities’ attitude,” said a trader at a Chinese city commercial bank in Shanghai.
