China resorts to 'nuclear strength' weapons to defend the yuan

Despite fighting words from the central bank and Communist party leaders, banks are calling the currency lower, pulling oil and stocks down further

The Chinese authorities have resorted to "nuclear strength" weapons to deter an attack on the yuan by short sellers and convince sceptical investors that they are in control of the country's spluttering financial system.

China's central bank fixed the currency firmer again on Tuesday but traders were not persuaded and the currency slipped in early trade despite what dealers called aggressive intervention to support the currency.