At the time of intervention, the currency was trading around 86 cents.

The currency traded in a narrow range through most of the day, dealers said.

The currency traded in a very narrow range all day around the world.

The Chinese currency has been trading at close to 8 yuan to the dollar.

The index suggests the currency should be trading at 19 to the US dollar, or 38pc higher than its current level of around 30.

Mr. Chandler maintained that the currency would trade still lower if not for these political developments.

By late in the day, the currency was trading at 139.90 yen and 1.7925 marks.

This provided a tunnel in which European currencies to trade.

Other currencies also traded lower against the German mark.

Officials in Malaysia have said they are unlikely to allow its currency, the ringgit, to trade freely.