Forex - China yuan falls to lowest in a year, state banks buy dollars

The Chinese yuan fell to its lowest level in nearly a year on Friday on dollar purchases by big state banks ahead of next week's annual National People's Congress gathering.

The yuan was last down 0.65% at 6.1637 against the U.S. dollar, the lowest since April last year and its sharpest one-day fall in the past year. The yuan fell as low as 6.1808, its weakest intraday price since late April last year. 

An official from the People's Bank of China told state-run Xinhua news agency that money rates have been falling and interbank liquidity levels are appropriate.

The currency turmoil carried over to Chinese stocks, which fell in the morning session with the Shanghai Composite Index ending the morning session down 0.95% at 2027.88. Hong Kong's Hang Seng Index was last down 0.49% at 22717.19.