China's state banks sell dollars to prevent fast yuan depreciation, sources say
SHANGHAI/BEIJING, Nov 6 (Reuters) -China's major state-owned banks were seen selling dollars in the onshore spot foreign exchange market on Wednesday morning to prevent the yuan from weakening too fast, four people with knowledge of the matter said.
The yuan weakened more than 0.5% to the U.S. dollar in morning trades to 7.15, the weakest level since Aug. 22.
Rapid yuan losses come as investors returned to so-called "Trump trades" with early results trickling in for an extremely close U.S. presidential election.
As part of his pitch to boost American manufacturing, Trump has promised voters he will impose tariffs of 60% or more on goods from China. Trump's proposed tariff and tax policies are seen as inflationary and therefore likely to keep U.S. interest rates high and undermine currencies of trading partners.
Reporting by Shanghai and Beijing Newsroom; Editing by Kim Coghill
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