Jan 31 (Reuters) - China's state banks were heavy sellers of dollars on Wednesday, three people with direct knowledge of their activity said, steadying the yuan as it came under pressure in currency trade.
State banks often act on behalf of China's central bank in the foreign exchange market, but they could also trade on their own behalf or execute clients' orders.
One of the people said the selling was "very forceful" to defend the yuan at around 7.1820 per dollar in the onshore spot market.
All the sources spoke on condition of anonymity as they are not allowed to publicly discuss market conditions.
The state bank action effectively put a floor under the onshore yuan, which last traded at 7.1813 per dollar.
(Reporting by Shanghai and Beijing Newsroom, Tom Westbrook in Singapore; Editing by Jacqueline Wong)
