China state banks seen buying dollars as yuan hits 16-month high, sources say
BEIJING/SHANGHAI, Sept 20 (Reuters) -China's major state-owned banks were seen buying dollars in the onshore spot foreign exchange market on Friday to prevent the yuan from appreciating too fast, two people with knowledge of the matter said.
The move comes as the yuan strengthened to a high of 7.0527 per dollar in morning deals, the strongest level in 16 months.
Rapid yuan gains could hurt China's export competitiveness at a time when signs of slowdown weigh on the world's second-largest economy, market watchers said.
Reporting by Beijing and Shanghai newsroom; Editing by Jacqueline Wong
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