China's central bank refutes yuan-dollar rate report

A clerk counts yuan bank notes and US dollar bills at a branch of the Industrial and Commercial Bank of China in Huaibei, East China's Anhui province, Nov 28, 2012. [Photo/IC]

China's central bank issued a statement overnight, condemning irresponsible media reports that onshore renminbi against the US dollar dropped down below the 7 key defensive line.

The PBOC confirmed the rate of the Yuan in the domestic inter-bank foreign exchange market remains stable between 6.95 and just below 6.96.

The bank says it retains the right to hold the related media outlet to account.

The people's bank issued the statement shortly after a Bloomberg's system showed the decline of the Chinese currency, shocking the market.

But it was later verified as untrue by Reuters.

Bloomberg has also confirmed there was problems with its information publishing and that the exchange rates in its system have now returned to normal.

It also said it was checking what information its staff had published.

It has been speculated in the market that the yuan would face further devaluation pressure in the short-term given the seesaw nature of the yuan-dollar relationship.