Yuan weakens to 6-month low

SHANGHAI: China’s yuan dropped to the lowest level in more than six months against a resurgent US dollar on Wednesday, as broad greenback strength in global markets eclipsed state banks’ efforts to underpin the local currency.

Sources told Reuters that China’s major state-owned banks were acquiring dollars in the offshore foreign exchange market before selling them in the spot market to stabilise the currency, in an apparent attempt to prevent the yuan from falling too fast.