China's reserves fall, suggesting Beijing propping up yuan

November 07, 2018 - 5:34 am

BEIJING (AP) — China's foreign currency reserves declined in October, suggesting Beijing might be intervening in market to keep its yuan's politically sensitive exchange rate from falling to far against the dollar.

Central bank data on Wednesday showed the reserves, the world's biggest, contracted by about $34 billion to just over $3 trillion.

The bank gave no indication how much of that was due to selling dollars to support the yuan. But Chinese authorities have promised to avoid a "competitive devaluation" to help exporters who face U.S. tariff hikes.

The yuan sank to a 10-year low against the dollar at the end of October, coming close to break the level of seven to the greenback. But the currency strengthened slightly this month, suggesting authorities intervened to stop its slide.

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