China’s major state-owned banks said to be buying dollars to limit yuan appreciation – report

Reuters reports on the matter

The report says that big state banks in China have been buying dollars in the onshore spot market during late night trading sessions to effectively prevent the yuan from strengthening too fast, citing two traders familiar with the operations.
Adding that they also have been swapping dollars for yuan in the swap market this week i.e. causing the yuan to fall in the forward market, and making yuan borrowings more expensive; suggesting that authorities are trying to limit the yuan appreciation.