Chinese Bank: State Banks

chinese bank: Bank clients just stopped buying at the levels where State banks emerged to sell dollars, said a Shanghai-based trader at a Chinese bank, according to Global Times China. The trader also noted the market would keep testing fresh lows, piling pressure on the yuan to depreciate, unless State banks stepped back in. Dollar demand by companies was strong in the morning. The People Bank of China set the midpoint rate at 6.9028 per dollar prior to market open, weaker than the previous fix 6.8934. The US Federal Reserve is all but certain to raise its short-term interest rate target by 0.25 percentage point to 0.50-0.75 percent, which would be just the second rate hike since the financial crisis in 2007-08. The spot market opened at 6.9049 per dollar and was changing hands at 6.9049 at midday, 0.03 percent softer than the midpoint. (news.financializer.com). As reported in the news.