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China state-owned banks buying dollars heavily

Chinese state-owned banks are aggressively buying dollars for the yuan, traders said, but it was not clear if the buying was due to Chinese central bank intervention to keep the yuan stable.

Several traders said Chinese state-owned banks were buying dollars at various levels, suggesting they were not trying to defend the yuan at a certain level.

However, Tuesday's aggressive buying of dollars could cut the supply of the US currency in the spot market in coming days, which may in turn influence the yuan's value. (Reuters)