June 27, 2017 / 8:11 AM / 2 months ago

China state banks seen selling dollars to push yuan to one-week high - traders

SHANGHAI, June 27 (Reuters) - Chinese state-owned banks sold dollars in the onshore foreign exchange market to prop up the Chinese currency on Tuesday afternoon, traders said.

"Major state-owned banks were selling dollars in the market to lift the yuan by more than 150 pips," said a trader at a Chinese bank in Shanghai.

A second trader at a Chinese bank also said he saw sales by state-owned banks.

The yuan strengthened around 200 pips to a high of 6.8199 per dollar in afternoon trade, the strongest intraday level since June 19.

It traded at 6.8274 per dollar as of 0800 GMT.

State-owned banks have sold dollars in the forex market regularly since late last year in what some traders believe is part of official efforts to prop up the Chinese currency. (Reporting by Winni Zhou and David Stanway; Editing by Richard Borsuk)

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