China yuan slides to four-month low, state banks step in

China's yuan declined to a four-month low against the dollar on Friday, breaching a key threshold and prompting state-owned banks to step in to defend the currency. In the spot market, the onshore yuan fell to the weak side of the psychologically important 7.2 per dollar level to hit a low of 7.24, its softest since Nov. 17, 2023. Market sources told Reuters that state banks stepped in subsequently to buy the yuan for dollars.